David Alexander Nicholson (52), of Dunedin, had been convicted of six charges of failing to furnish income tax returns and seven charges of failing to furnish GST returns, with intent to evade the assessment or payment of tax.
The income tax return offending was for the 2008 to 2014 tax years (excluding 2012).
The GST offending was for the six six-monthly periods beginning October 1, 2007 to April 1, 2010, and between April 1, 2013 and September 30 that year.
The total tax evaded was $309,383, there being $235,185 income tax evaded and $74,198 GST evaded.
Counsel John Westgate said Nicholson pleaded guilty shortly before a defended hearing.
Nicholson had several serious issues in his life at the time of the offending. Somewhat disappointingly, he had not managed to get himself completely back on track. However, he had made improvements, got good work with the university and was earning good money.
Nicholson had been able to pay back about $300,000.
Although there was still money outstanding and he was generating ongoing tax obligations which had not been met, Nicholson was capable of paying back huge amounts of money.
He was very confident that with appropriate management he would eventually be able to pay it all.
"If he goes to jail he will lose his job.''
Inland Revenue prosecuting counsel David Tasker said the offending was with evasive intent.
Nicholson had paid about $300,000, which cleared the GST arrears and covered some penalties and interest, but at the same time he was again failing to file returns and now had a total tax debt of about $660,000. It appeared the money he had been paying was no more than robbing Peter to pay Paul.
"It is just ongoing,'' Mr Tasker said. Nicholson had paid no tax in the past two years. Despite the $300,000 paid, his tax bill was now larger. There was little chance the position would be improved.
Judge Kevin Phillips noted that in 2007 Nicholson was made bankrupt for unpaid tax and child support. When the offending began, he was an undischarged bankrupt.
At the time of the offending he was a self-employed IT consultant. He had been solvent at all stages and would have been able to pay his income tax and GST if he had paid on time. It now looked as if there was little prospect of the money being recovered.
The Inland Revenue expected only a fraction would ever be repaid. The department had spent considerable time and resources detecting and investigating the offending. Nicholson had been using the money for his own advantage. The offending involved premeditated fraud.
Nicholson told probation financial pressure combined with resentment about enforced historical liable parent costs he felt were unjustified was behind the offending, the judge said. Nicholson showed little remorse and remained non-compliant.
On one of the GST charges, Nicholson was sentenced to two years and two months' jail. All other charges resulted in concurrent one-year terms.
