Reverend who refused help is jailed for tax evasion

An Auckland Reverend who deliberately ignored offers of help from Inland Revenue has been jailed after evading more than one million dollars of tax.

Tosala Fauatea, also known as Laumoli Sefatu was sentenced to 3 years imprisonment after pleading guilty to 61 charges of failing to provide GST returns and evading GST and PAYE between 2007 and 2011.

Patrick Goggin, Group Manager Investigations and Advice at Inland Revenue, said refusing to pay your tax was simply not an option. Essential services like schools and hospitals are not free; everyone must pay their fair share.

Fauatea, of the Assembly of God Church of Samoa, established the la O’o Mai Lou Malo Support Trust which provided labourers to fruit and vegetable growers in South Auckland.

Despite registering the Trust with Inland Revenue, Fauatea failed to file any GST returns nor did he ever deduct or pay the correct PAYE amounts. Over five years, Fauatea evaded over $800,000 in PAYE and over $300,000 in GST.

“Fauatea knew what he was doing was wrong but chose to deliberately break the law and cheat the system ripping off money from honest taxpayers,” said Mr Goggin.

Fauatea prepared tax invoices clearly showing he was charging GST over the five year period, but failed to account to Inland Revenue for the GST he charged.

He would withdraw the PAYE amounts he deducted from his employees’ wages in cash but never paid those amounts to Inland Revenue; or he would simply fail to deduct PAYE in the first place.

“Inland Revenue trusts taxpayers to do the right thing, and most do, however this is a stark reminder that offenders who choose not to, will be caught and they will be made accountable,“ Mr Goggin said.

Fauatea was also convicted in Auckland District Court this week of four separate charges under the Crimes Act laid by Housing New Zealand

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