A Christchurch security consultant who did work for the All Blacks has had to sell his home to pay a court order for $225,000 unpaid taxes – about two thirds of what he owes.
Jayson Samuel Ryan, 45, will also be on home detention at his address in north Christchurch for nine months and will have to do 400 hours of community work, which is the maximum sentence.
Ryan has sold his family home to pay $200,000 reparations to Inland Revenue straight away, and Christchurch District Court Judge Tom Gilbert ordered him to pay another $25,000 at $250 a week, which will take about another two years.
Ryan had admitted three representative charges of aiding and abetting his three companies to apply tax deductions to purposes other than tax payments.
The offending covers 44 tax periods.
The companies involved were Ryan Security and Consulting Ltd, Ryan Security and Consulting Auckland Ltd, and Ryan Security and Consulting Christchurch Ltd.
Ryan’s security consultancy services had been used by high profile organisations including the All Blacks, New Zealand Cricket, The Edge Management Group overseeing the Aotea Centre, Auckland Town Hall and the Civic and Aotea Square, the New Zealand Government and some high profile private businesses.
The Christchurch and Auckland companies provided security for Dan Carter, Richie McCaw and their team-mates. The companies were placed in liquidation by the High Court in Christchurch in April 2013, on a request from Inland Revenue.
Ryan was the sole director of the three companies. Their business was “to provide security services at events and hospitality venues throughout the country”, Inland Revenue prosecutor Virginia Diefenbach told the court.
She said the companies failed to account for a total of $332,979 to the Commissioner of Inland Revenue for PAYE deductions from staff and associated tax types between January 31, 2007, and January 31, 2013.
Bank records could not be obtained for Ryan Security, but an analysis of the Ryan Christchurch and Auckland companies showed that on 14 of the 26 offending periods involving those companies there were enough funds to pay the PAYE and associated tax types by the due date.
When interviewed, Ryan acknowledged that he was responsible for the day-to-day running of the business. Wages were the companies’ biggest expense and were prioritised over other creditors. He said he had some health issues, but managed to keep the business running with help from his managers.
Judge Gilbert said the companies had been liquidated because of serious mismanagement leading to insolvency, and Ryan had been prohibited from managing or being a director. He had been reminded of his tax obligations on several occasions but despite this, the PAYE offending continued.
Employee wages were prioritised over other creditors, including the Commissioner of Inland Revenue.
Ryan was assessed as being remorseful for the choices he had made, but the offending had continued despite warnings. “I rather think your remorse primarily relates to the predicament you are now in rather than the fraud you have committed on fellow New Zealanders,” said the judge.
He said Ryan’s offending had “created an unfair playing field for others in the industry who were compliant”.
He took into account Ryan’s guilty pleas and his reparation offer, and decided to impose a home detention sentence, community work, and a substantial reparation order.
“I am persuaded by the smallest of margins not to send you to prison, but to impose home detention,” said the judge.
Ryan now works as a bar manager.