Rongotea man faces jail for failing to pay employees' income tax
A Rongotea man and his son have both admitted to failing to sort out the taxes for two companies they ran, which saw nearly $140,000 of tax go unpaid.
Mervyn Roy Mehlhopt pleaded guilty in the Palmerston North District Court on Friday to two charges relating to the offending.
He and his son Peter Mehlhopt were responsible for running two companies - Painting 4 U (2012) and Painting 4 U - part of which included ensuring the income tax employees owed was correctly deducted from pay packets, and paid to Inland Revenue.
The tax should have been paid every month, but they missed multiple payments between July 2009 and September 2013.
Painting 4 U failed to pay $101,500 of tax, while Painting 4 U (2012) failed to pay $35,920.
About half of each company's debt has been repaid.
The court heard Peter Mehlhopt had already pleaded guilty for his involvement and was to be sentenced in July.
Judge Gregory Ross convicted Mervyn Mehlhopt and remanded him until July for sentencing.
The judge asked for Corrections to prepare a report to see if home detention could be served, but warned Mervyn Mehlhopt that he could be going to jail.
"The charges are at the serious end of the scale."