A spokesperson for Inland Revenue did not respond to a request for comment.<\/p>\n
But the Herald can reveal the Inland Revenue investigation into the alleged $57m of unpaid tax was prompted by Zespri, which sells billions of dollars of kiwifruit globally on behalf of New Zealand growers.<\/p>\n
The company uses specialist investigators to find evidence of labour exploitation, such as illegal migrants being paid under the table with cash to avoid tax, with alleged offenders blacklisted from the industry.<\/p>\n
To prevent poor practices in the first place, kiwifruit growers must be certified with an internationally recognised system for worker safety, health and welfare, as well as comply with Zespri\u2018s code of conduct.<\/p>\n
Any contractors wishing to work on orchards go through a vetting process conducted by an investigation consultancy, AIM CRI, and also hold a compliance assessment verification (CAV).<\/p>\n
To get a CAV, contractors must show they have the appropriate systems in place and are inspected by Zespri every year.<\/p>\n
A list of contractors who have had their CAV suspended or terminated is published so growers know who can be hired.<\/p>\n
A spokesperson for Zespri confirmed that Saran Contracting and Gurukirpa Contracting had their CAV suspended in April 2022 following an investigation which identified a \u201cwide range of non-compliance\u201d.<\/p>\n
The Zespri report into both companies run by Singh was then referred to three different enforcement agencies: New Zealand Police, Immigration New Zealand and Inland Revenue.<\/p>\n
However, the police and immigration officials decided to leave any investigation to Inland Revenue as the \u201cmost appropriate avenue to address the primary offending\u201d that had been alleged.<\/p>\n
Through an interpreter, Ajaypal Singh said that he believed the CAV accreditations for his companies were suspended in 2022 because of complaints from orchard owners about the quality of the work by the hired labourers.<\/p>\n
Because the companies could no longer generate revenue, Singh claimed that Inland Revenue, in fact, owed his two businesses nearly $5m in tax refunds.<\/p>\n
He also claimed about $15m in unpaid taxes attributed to his businesses was in fact owed by subcontractors who provided labour on behalf of the Saran and Gurukirpa companies.<\/p>\n
Singh said he provided financial statements, invoices and timesheets to Inland Revenue but his argument was rejected.<\/p>\n
He wanted to dispute the tax bill in court but said he could not afford to hire lawyers to take on Inland Revenue.<\/p>\n
As a result of losing his income, Singh said that he was forced to sell his home and is now an undischarged bankrupt.<\/p>\n
\u201cI have no job or work … I am on the benefit now.\u201d <\/p>\n
The wider issue of cash wages in NZ <\/p>\n
Zespri is believed to be the only corporate entity in New Zealand to vet the supply chain and investigate allegations of labour exploitation.<\/p>\n
But industries such as horticulture, construction and hospitality have been labelled \u201chigh risk\u201d for money laundering and should be banned from paying wages in cash, according to an expert panel advising the Government on organised crime.<\/p>\n
Cabinet Minister Casey Costello has been driving the Government’s response to organised crime and wants more effective sharing of information between agencies. Photo \/ Mark Mitchell <\/p>\n