6 Feb 2016

Restaurant chain investigated for tax evasion

9:06 am on 6 February 2016

A restaurant chain found to have exploited its migrant workers is now being investigated for widespread tax evasion.

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Photo: 123rf.com

The High Court has restrained 33 commercial and residential properties linked to the Masala chain of Indian restaurants, to prevent them being sold while the police and Inland Revenue investigate.

Two of Masala's managers were sentenced to home detention last year for misleading immigration officers and exploiting workers at restaurants across Auckland.

Now Inland Revenue has alleged companies which own the restaurants avoided more than $7 million in tax between 2008 and 2014.

IRD told the court the company owners systematically stripped cash from the restaurants and failed to declare cash sales and income.

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