Jailed for $3m tax fraud
Posted at 1:57pm Thursday 31 Aug, 2017
A Tauranga woman who created an elaborate scheme to defraud taxpayers of nearly $3 million has been sentenced to prison for three years and seven months.
Karina Charmaine Knedler, 31, was sentenced today in Tauranga District Court on 19 charges of using a document.
The charges mostly related to false GST refund claims for several fictitious businesses which never actually traded.
These offences resulted in her receiving more than $1.1 million in refunds. Inland Revenue Group Manager Investigations and Advice Patrick Goggin says Knedler created an extremely complex scheme to rip-off taxpayers.
From 2014 to 2016, Knedler filed numerous faIse GST returns on behalf of Fitonez Limited, claiming a refund was due.
In total, 21 fraudulent GST returns were filed, and the defendant provided forged invoices and bank statements to support the claims. Some of the refund claims related to fictitious property transactions in the millions of dollars.
“Knedler was calculating, devious, and quite relentless in her pursuit of money to which she wasn't entitled.
“Even when returns were being questioned, she produced numerous forged documents and conflicting explanations to back what became an increasingly elaborate web of deceit.”
Even while Knedler was being investigated in respect of Fitonez Limited, she commenced a series of new fraudulent offending relating to other fictitious companies set up using different personal identities.
“This defendant's behaviour clearly showed brazen disregard for the tax system. She thought it was fine to repeatedly try to rip off millions in taxpayers' money that goes towards funding vital social services.
“She used the money she received to fund overseas travel, construction of a residential property and costs associated with setting up her business activities, among other things.
"In short, she showed utter contempt for honest New Zealanders who do the right thing and pay their fair share of tax.”
In addition to the GST offences, Knedler also committed fraud by making false Working for Families tax credits claims.
This meant she received nearly $70,000 she wasn't entitled to for children that were in her care since 2010.
Inland Revenue will be exploring every available action to recover the money Knedler had stolen from taxpayers, says Patrick.