Accountant jailed for PAYE, GST evasion

A King Country accountant and businessman has been sentenced to 12 months' jail after failing to pass on PAYE deductions from staff over a six-year period.

James Ivan Woollams, of Te Kuiti, pleaded guilty in Hamilton District Court to 76 charges involving PAYE and GST between 1998 and 2004.

He was granted leave to apply for home detention.

The Inland Revenue Department (IRD) said in a statement this afternoon people who tried to cheat the system would be caught.

"If an employer isn't passing on PAYE from their employees and using it for something else it is theft," IRD manager investigations, assurance, Neil Lewer, said.

"They are taking money that should be going to services in the community like hospitals and schools," he said.

IRD said Woollams owned a giftware and stationery store, Cabana Gifts, in Te Kuiti and also provided accounting and commercial services.

IRD began investigating the company after being approached by staff asking why they had no earnings recorded on their personal tax summaries.

From April 1998 until March 2004, Cabana Gifts employed five shop assistants.

However, despite deducting PAYE from their wages it was never passed to Inland Revenue. The gross wages over the six-year period was $122,039 and the PAYE amount was $21,483.

A review of the company's GST returns also established that between April 2002 and March 2003 the company understated GST by $3784.

To date no payment for the either the outstanding PAYE or GST had been made, IRD said.

NZPA