A Tauranga man has been sentenced over fraud/evasion charges relating to false GST and income tax returns linked to Covid-19 relief payments.
Vincent Reynolds was sentenced on 10 fraud/evasion charges of using or attempting to use false GST and income tax returns, false documents, made faking Covid-19 relief claims and provided altered bank statements to get money he was not entitled to.
A judgement from Inland Revenue (IR) said in total over 15 months he applied for more than $131,865.51, but received $84,265.51.
He set up and ran NZ Digital Media Holdings Limited (NZDMHL) from June 2, 2020. Just a couple of weeks later he resigned as a director, and his mother took over in name only.
Despite resigning as a director, he continued to control NZDMHL, continuing to file GST returns, income tax returns, and applications for several Covid-related relief schemes.
Reynolds' GST-related offending netted at least $47,865.51.
The GST refunds were paid into NZDMHL’s bank account which Reynolds controlled, with the money spent on himself.
He filed false income tax returns for NZDMHL totalling more than $30,000 in tax losses. But the company made no sales nor incurred any expenditure.
At the time, Covid-19 support schemes were rolled out in a high trust model to get help to people who qualified for it as quickly as possible.
The total amount of Resurgence Support Payments (RSP), Covid Support Payments (CSP) and Small Business Cashflow Scheme (SBCS) payments Reynolds dishonestly applied for was $84,000.
He received $36,800 before Inland Revenue discovered and stopped the payments.
Inland Revenue asked Reynolds for more information to support his SBCS application.
What he provided were various invoices purportedly issued by NZDMHL to customers in order to create the appearance of business income when there was none.
IR also asked Reynolds for further information on his RSP application and his income tax returns.
The bank statements he provided were altered to create the appearance of business income and expenditure when it didn’t exist.
He was handed the 24-month imprisonment in the Tauranga District Court on March 17, with leave to apply for home detention.
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