Kerikeri man sentenced to 3½ years’ jail for tax evasion

21 December 2015

A former Kerikeri man highly skilled in accounting and information technology who devised a tax evasion scheme involving Maori trusts has been sentenced to three and a half years in jail.

Timothy Vivian Meredith was sentenced in Whangarei District Court on tax offences totalling nearly $500,000 relating to a number of businesses.

Inland Revenue’s Group Manager Investigations and Advice, Tony Morris, said Meredith used the Nga Uri O Tupoto Incorporation bank account with three others to effectively ”wash” his and their income from various businesses to evade tax.

“Meredith devised a scheme contracting participants ‘personal services’ through the incorporation. No income tax or GST returns were filed and Meredith effectively washed the income through the bank account and it was used by the participants for their personal living expenses,” Mr Morris said.

Meredith knew he was required to file his income tax and GST returns and was aware of the consequences of not doing so, Mr Morris said. He was previously prosecuted in 2007 and made bankrupt in 2008 for failing to file tax returns for an accounting and business mentoring service.

“We take this type of activity extremely seriously and continue to use new tools to identify and combat patterns of offending like this.

“This sort of despicable behaviour really undermines the tax system,” Mr Morris said. “While the vast majority of taxpayers are doing the right thing, there are people like Meredith who think they can get away with ripping off decent New Zealanders.”

The tax Meredith evaded paying would have funded essential services that all New Zealanders benefit from such as schools, roads and healthcare.

Meredith has been declared bankrupt for the second time.

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