A Christchurch man was sentenced to two years and three months in prison after evading company taxes of nearly $1.4 million.
Daniel Robert Clarke, of property maintenance company Phil Clarke and Son Limited, faced 21 charges of aiding and abetting and 15 charges of tax evasion after he failed to make multiple payments to Inland Revenue (IR). He was sentenced in the Christchurch District Court on Friday.
It was found that Clarke was deducting PAYE, student loan repayments and KiwiSaver contributions from employees' wages, but failed to forward the money to IR on 22 occasions.
He took over company operations in May 2022 and met tax requirements until January 2023, when he began to stop making payments to IR.
A total of $610,005 was owed in GST early 2023 to mid 2025, but went unpaid across 15 GST periods.
IR said the missed payments were on purpose, with Clarke deciding to direct the company's money elsewhere.
"It was a deliberate decision by Clarke to pay creditors and employee wages rather than to pay the GST," IR said.
"Clarke also used the available money towards paying company expenses and transferred money for living expenses and home renovations. When the renovated house was sold, none of the proceeds were used to reduce the amount he owed to Inland Revenue."
Judge Tom Gilbert heard Clarke's use of tax money as working capital and personal income gave him an unlawful competitive and lifestyle advantage over those who paid their tax.
Between January 2023 and July 2025, Clarke personally made nearly $2 million from Phil Clarke and Son Limited.
Nearly $800,000 is still owed, even though the company was able to pay required amounts when they were due.
Phil Clarke and Son Limited was placed into liquidation on July 8, 2025, with Clarke being declared bankrupt on April 8, 2026.
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