Kevin Stent / Stuff
Chanaratt Thongskul served a prison sentence and sold his family home to help pay for part of the restoration. (File photo)
A restaurateur ordered to pay $ 900,000 in tax evasion has canceled a large portion of the bill.
Chanaratt Thongskul, 55, used to have restaurants in Hamilton, Whanganui, Lower Hutt and Napier.
He was sentenced to two years and eight months in prison after pleading guilty to inciting his companies’ false AVB and income tax returns and his own personal tax returns.
As well as the jail sentence imposed in October 2019, Thongskul was ordered to pay $ 900,000 in damages for the $ 950,000 tax evaded over about seven years.
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A recent Supreme Court ruling says his family home was sold to help pay $ 500,000 of the repair and he planned to pay the rest from business income.
But when he was released from prison, the Parole Board set conditions that he should not be involved in the handling of money, or the management of the financial accounts of any entity, unless a probation officer allowed it.
“How expected those conditions would be in line with the continued fulfillment of the recovery sentence is unclear,” Judge Matthew Palmer wrote in his decision.
A spokesperson for the Parole Board later said the council’s guiding principle in each case was the safety of the community, and the conditions reflected that.
In its second decision on Thongskul’s case, the board said the sale of the businesses is expected to yield another $ 230,000, but due to Covid-19 and a lack of time, sales to unrelated third parties on the open market could not be organized. does not become.
Chris McKeen / Stuff
Tax consultant Terry Baucher says Home Revenue is starting to crack down on the inappropriate use of trusts and companies.
The judge of the high court said Thongskul’s businesses were sold to extended family members and then stopped trading. The crown said the businesses were sold at below-market value.
Thongskul has not been active since leaving prison on September 30, 2020, and is living off the income of his wife and daughter, the judge said.
“Because the remaining $ 400,000 in repairs would be paid from the income of Mr Thongskul’s businesses, and he sold those businesses, he did not pay for the repairs,” he said.
The judge granted Thongskul’s application to cancel the outstanding damages.
The Crown suspected that Thongskul had assets not held in his own name, or that other family members involved in the offense could help pay damages.
If the recovery sentence is canceled, Thongskul should be sentenced to at least another three months in prison, the Crown said.
But the judge said the evidence did not support the Crown’s allegations. No reliable evidence was provided that Thongskul had access to additional income or assets.
The value paid for the businesses seemed justified on the evidence, there was no evidence that Thongskul used his daughter to hide assets or income, and it was doubtful that other family members would help him pay damages, said the judge.
“The Crown could not make out his allegations.”
“There is no evidence that he has significant wealth, assets or income,” the judge said.
Dean Kozanic / Stuff
Judge Matthew Palmer says Thongskul and his family must be able to get on with their lives. (File photo)
Since he is currently living entirely on his wife’s earnings if he were to get a job, all of his wages could go for compensation, but he was still unemployed when the case was heard one year and three months after he left prison.
As things stood, the outstanding compensation should be canceled, the judge said.
Sending him back to jail would serve no useful purpose.
“He and his family should be able to get on with their lives,” the judge said.