Auckland tradesman gets 8 months’ home detention for not declaring income

21 April 2017

A Silverdale tradesman has been sentenced to eight months’ home detention for not declaring nearly $500,000 in payments for gibstopping jobs over a three-year period.

Plasterer Konstantine Malioutine had earlier pleaded guilty to four tax evasion charges in the North Shore District Court. The total tax he failed to pay was $183,118.

Graham Tubb, Inland Revenue’s Group Tax Counsel, said Malioutine clearly thought he could get away with doing jobs and pocketing all the income, while not paying tax on it.

“I think most New Zealanders have moved on from thinking that it’s okay for tradesmen to do cash jobs and get away with paying no tax. Unfortunately Mr Malioutine hadn’t changed with the times.”

Mr Tubb said when Malioutine was questioned by Inland Revenue investigators, he conceded the income from his plastering activities should have been included in his income tax and GST returns as income. However, he was unable to explain why he treated them as funds for his personal use.

“Our marketing campaigns over the past two years have been very clear about this type of behaviour. We’re black and white about undeclared income – it’s a tax crime.

“These actions just aren’t the Kiwi way anymore. They’re denying law-abiding New Zealanders of revenue for vital services such hospitals, schools and emergency services.”

Along with home detention, the judge made a reparation order for Malioutine to pay back the outstanding tax to Inland Revenue.

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