A Paraparaumu pizza store owner was sentenced to 10 months' home detention for evading more than half a million dollars in tax.
Wenbin (Ivan) Shi, who operated Hell's Pizza in Paraparaumu through SWB Foods Ltd (SWB) since 2014, was sentenced in the Porirua District Court on October 15.
Inland Revenue said Shi had "full knowledge and control over the tax obligations" of the business, but failed to file 25 GST returns, five years of company income tax returns, and personal income tax returns over the same period.
He also failed to pay 23 PAYE deductions to Inland Revenue.
An Inland Revenue audit launched in June 2024 found SWB had a tax debt of $400,000.
During the audit, both SWB and Shi's accounts were reviewed.
The review showed annual sales of between $687,708 in 2017 and $1,390,341 in 2024. Shi then stopped filing GST returns in 2020, with the outstanding at $185,143.86.
Between April 2015 and April 2018, SWB largely filed and paid PAYE on time. However, between July 2019 and November 2022, Shi deducted PAYE from employees' wages but failed to pass it on to Inland Revenue.
The amount unpaid was $194,295.50.
"PAYE arrears were deducted from the company accounts under Section 157 of the Tax Administration Act, and two statutory demands were issued which together resulted in a portion of the PAYE arrears being paid," Inland Revenue said.
It also found an accountant filed income tax returns for SWB between March 2015 and March 2019, but SWB’s accountant had no contact with Shi since 2022.
SWB then failed to file annual income tax returns between March 2020 and March 2024, with unpaid tax estimated at $124,415.77.
Judge Andy Nicolls said deterrence and denunciation were important sentencing factors, noting tax offending was not a "victimless crime".
Shi faced a representative charge of not providing GST, company and personal income tax returns. He also faced another representative charge of aiding and abetting the pizza franchise by taking PAYE from staff wages and not passing it on to Inland Revenue.
In November 2025, Shi filed all outstanding GST and income tax returns which added up to $503,855.13. Shi had repaid $100,000.00 before sentencing, resulting in a total loss amount to Inland Revenue of $403,855.13.
SHARE ME