18 Jul 2017

$500k tax evader handed 33 weeks home detention

4:23 pm on 18 July 2017

A Gisborne businessman who evaded nearly $500,000 in tax has been sentenced to seven-and-a-half-months' home detention.

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Photo: 123RF

Liangxing Luo, hid more than $1 million in tax sales from his accountant by pocketing cash sales over a four-year period.

In total he evaded just over $420,000 in tax and GST.

Luo, 46, runs the Art Fun Wear chain of emporium-style stores in Gisborne, Dunedin and Invercargill.

He claimed he directed cash takings into his personal accounts to avoid bank fees, but Inland Revenue said that was a baseless defence.

The IRD was able to recover the unpaid tax by deducting it from associated bank accounts.