A café owner in Tāmaki Makaurau/Auckland has been sentenced to prison for tax evasion - costing taxpayers at least $420,832.
Mother-of-six Elizabeth Tangikau will spend two years and three months behind bars for evading tax, according to a statement released by Te Tari Taake/Inland Revenue Department (IRD) on Tuesday.
The IRD explained how she "evaded her income tax and GST obligations" by filing 75 false tax returns over a period of six years, while she was running a café at the NZ Post Centre in Highbrook.
She "significantly understated" her business income on tax returns and claimed excessive expenditure too.
But that wasn't all.
She also misappropriated payroll (PAYE) taxes by deducting money from her employees' pay for taxes, and then "[keeping] the amounts for herself", the IRD said.
Tangikau also received about $42,500 of family assistance payments which "she was not entitled to".
IRD said they reached out to help Tangikau several times, ensuring she had access to "resources to comply", while reminding her of "serious consequences" from non-compliance.
Despite that, Tangikau carried on and ignored IRD's attempts to assist her.
She eventually expressed remorse in a letter to the court, and said she understood her behaviour "had a significant impact" on Kiwis.
The judge noted the "large amount of money" involved and said there was a lack of attempt to make amends, saying a prison sentence was justified.
Tangikau was sentenced at the Auckland District Court last Tuesday.
