An Auckland woman has been sentenced to home detention after diverting company funds into her personal account to evade PAYE deductions owed to Inland Revenue.
Victoria Sabrina Kalapa, a 36-year-old Auckland woman, has been sentenced to 12 months of home detention for serious tax offences stemming from her management of Gold Standard Scaffolding Ltd (GSSL).
The sentencing took place on April 2 at the Auckland District Court.
Kalapa was found guilty of aiding her company in failing to remit Pay As You Earn (PAYE) deductions to Inland Revenue, despite overseeing substantial financial transactions that led to significant personal gains.
As the sole director and shareholder of GSSL, which operated from 2019 until its liquidation in 2023, Kalapa was responsible for managing the company’s finances alongside her husband, who acted as the operating manager.
An investigation by Inland Revenue, initiated in July 2023, uncovered troubling evidence. Records revealed that GSSL had received deposits totaling $4.5 million over four years, with nearly equal amounts being withdrawn.
Shockingly, more than $2 million in “drawings” was transferred to Kalapa’s personal bank accounts, alongside reported “wages” totaling almost half a million dollars.
Documents presented to the court highlighted that from November 2019 to April 2023, GSSL failed to transfer any PAYE payments to the Inland Revenue, except for a minimal payment of $500.
Despite the company’s substantial bank balance, Kalapa prioritized personal withdrawals over fulfilling her company’s tax obligations. Inland Revenue’s investigation revealed that the total unpaid PAYE tax assessed against GSSL stands at $558,884.58, with additional late fees pushing the total liability over $560,000.
Although Kalapa sought an instalment arrangement with Inland Revenue, the agreement collapsed due to missed payments, further complicating her legal issues.
The court not only imposed home detention but also ordered Kalapa to pay reparations of $13,000 at a rate of $50 per week, reflecting the seriousness of her financial misconduct.
This case serves as a stark reminder of the legal responsibilities business owners hold in managing tax obligations and the consequences of failing to comply with these requirements.
