Ex-Dunedin barrister struck off

A former Dunedin barrister spent money owed to Inland Revenue on personal expenses such as mortgage payments, overseas travel, alcohol, private school fees and a monthly payment on a Jaguar car, the New Zealand Law Society said yesterday.

Raelene Marie Kelly, "who fled to Australia'', was struck off by the New Zealand Lawyers and Conveyancers Disciplinary Tribunal earlier this week.

A media release from the Law Society said she was found guilty in absentia last year on 46 charges of tax evasion.

She did not appear at her criminal trial or sentencing, and was also absent from her tribunal hearing.

She was struck off as a lawyer as a result of her criminal conduct as her convictions "reflect on her fitness to practise or bring the profession into disrepute'', the release said.

Kelly was convicted of 31 charges related to using PAYE deductions for a purpose other than paying the Commissioner of Inland Revenue and 15 charges of knowingly failing to provide GST returns to Inland Revenue.

She used the $60,993 of unpaid PAYE to pay the mortgage on her Maori Hill home and on monthly car payments for her Jaguar, New Zealand Law Society national prosecutions manager Mark Treleaven said.

The money was also used to travel overseas, pay private school fees and buy alcohol, he said.

The GST owed was $122,633, bringing the unpaid tax liability to $183,626.

Kelly was the director of Kelly Chambers Ltd, a George St law firm.

A warrant was issued for her arrest when she failed to attend her sentencing in the Dunedin District Court last October.

Liquidators sold her house and the proceeds were paid to Inland Revenue.

No payments have been made to preferential creditors since the company was placed into liquidation in August 2014.

In March last year, when the charges were laid, Kelly denied evading paying GST or PAYE.

At her sentencing, Judge Paul Kellar said the charges were "relatively serious'', noting the maximum penalty for each charge was up to five years' jail and/or a fine of up to $50,000.

After working for a Dunedin law firm, Kelly founded Kelly Chambers Ltd in 2010, offering services in the corporate sector.

In addition to striking her off, the Disciplinary Tribunal has ordered Kelly to pay the New Zealand Law Society's costs of $12,683 and to reimburse the costs of the hearing.

timothy.brown@odt.co.nz

 

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