A businessman who admitted 44 charges is now bankrupt and cannot pay any of the $1.5 million of unpaid tax his companies owed.
Libor Lasek, 47, has now begun a three-year four-month jail term after pleading guilty to the charges of failing to account for the deductions.
The defaults included PAYE tax deductions, KiwiSaver employee deductions and contributions, student loan employer deductions, child support employer deductions, and employer superannuation contributions.
He admitted aiding and abetting Libor Interiors Ltd, Libor Living Ltd, Libor Ltd, and L Group Ltd in not paying the funds to Inland Revenue.
The businesses provided building and joinery services in the Christchurch construction industry, and were placed in liquidation in 2015 owing over $2 million. The offending took place from 2013 to 2015.
Defence counsel James Rapley told Christchurch District Court Judge Stephen O’Driscoll that Lasek had problems with his businesses, which led to cash flow problems. He had not been able to cope with the pressures of having all the staff, and had paid other creditors first.
Judge O’Driscoll said he took into account the extent of the offending and the amount of the loss, the length of time involved in the offending, the breach of trust, and the premeditation.
“I take into account that there was continued offending after the Commissioner of Inland Revenue had given you a warning,” said the judge.
“You really now have no ability to mitigate the losses,” said the judge, noting that Lasek was now bankrupt and had no assets, no income, and no savings.
Lasek said at his pre-sentence interview with probation that his focus was to use his time in prison to stay in contact with his family.
Judge O’Driscoll said he would not lecture Lasek about what he had done wrong, and the need to comply with the tax legislation “because everyone knows what their obligations are”.
He made no reparation order.