Latest news with #ESST
1News
18-07-2025
- Business
- 1News
Auckland man first in NZ sentenced over possession of tax evasion software
An Auckland man has become the first person in New Zealand to be convicted and sentenced for aiding and abetting his company's possession of electronic tools that helped evade tax assessments and payment. Gurwinder Singh, who ran a pizza outlet called Just Pizza in Waiuku, was sentenced in the Manukau District Court on July 15 to seven months home detention on tax evasion charges and a charge of aiding and abetting his company for possessing electronic sales suppression tools (ESST). As part of an Inland Revenue (IR) investigation, searches were carried out at his home and business. Bank records were also obtained, and during an interview, Singh admitted he was hiding income from his tax agent so he could pay less tax. Ex-employees confirmed the business employed four staff, including Singh, but PAYE returns indicated only two. ADVERTISEMENT IR said Singh's offending was planned, calculated, and required ongoing financial manipulation. The morning's headlines in 90 seconds, including a Wellington house fire, the UK lowers the voting age, and the Obamas joke about divorce rumours. (Source: 1News) "The total GST discrepancy from the offending is $78,777.09; income tax discrepancy is nearly $100,000; and the PAYE discrepancy is $21,337 – a total of just over $198,500." The department said ESST poses a "significant" threat to the integrity of the tax system. "There's no other purpose to ESST other than to facilitate tax evasion or money laundering. They're being used globally to systematically alter point-of-sale data collected to understate or completely conceal revenue to evade tax." The sentencing was the first of its kind since April 2022, when New Zealand introduced laws making it an offence to acquire or possess ESST. The Judge ordered the start date of the sentence to be deferred until August 20 to allow Singh to attend family funerals in Fiji.
RNZ News
18-07-2025
- Business
- RNZ News
Auckland man sentenced in NZ's first 'zapper' tech tax cheating conviction
Photo: 123RF An Auckland man has become the first person in New Zealand to be convicted and sentenced for using electronic equipment to underreport sales and dodge tax. Gurwinder Singh was sentenced in the Manukau District Court this week to seven months' home detention on tax evasion charges and for possessing electronic sales suppression tools (ESST) to evade the assessment and payment of tax. IRD said Singh, who runs a pizza outlet in Waiuku, admitted he was hiding income from his tax agent so that he did not have to pay so much tax. "Singh's offending was planned, calculated and required ongoing financial manipulation," it said in a statement. Singh also claimed only two staff were employed when there were four. The total amount of tax avoided was around $200,000, composed of approximately $79,000 in GST, $100,000 in income tax, and $21,000 in PAYE. ESST technology, also known as "phantomware" and "zappers," connects to point of sale systems to underreport sales and reduce taxable income. The IRD has previously warned of a crackdown and harsh penalties for possessing ESST technology, because it posed a threat to the integrity of the tax system. Buying, possessing, and using ESST technology was made a criminal offence in 2022, with fines ranging between $5,000 for buying and possession, to $250,000 for using it. IRD has received an extra $64 million in this year's budget to boost tax collection and drive tax compliance. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
17-07-2025
- Business
- Scoop
First Sentencing For Possession Of Tax Evasion Tools
15 July 2025 An Auckland man has become the first person in New Zealand to be convicted and sentenced for aiding and abetting his company's possession of electronic sales suppression tools (ESST). In response to the growing threat of these digital tools, stiff measures were introduced in April 2022 and made it an offence to acquire or possess ESST in New Zealand. Gurwinder Singh was sentenced in the Manukau District Court on 15 July to seven months home detention on tax evasion charges and a charge of aiding and abetting his company for possessing electronic sales suppression tools for the purpose of evading the assessment and payment of tax. The Judge ordered the start date of the sentence be deferred until 20 August to allow Singh to travel to Fiji for family funerals. The investigation Singh runs a pizza outlet, Just Pizza, in Waiuku. As part of an Inland Revenue (IR) investigation searches were carried out at his home and business addresses, and bank records obtained. During an interview, Singh admitted he was hiding income from his tax agent so that he didn't have to pay so much tax. Ex-employees confirmed the pizza business employed 4 staff including Singh, but PAYE returns indicated only 2 staff. Calculated offending Singh's offending was planned, calculated and required ongoing financial manipulation. The total GST discrepancy from the offending is $78,777.09; income tax discrepancy is nearly $100,000; and the PAYE discrepancy is $21,337 – a total of just over $198,500. Effect on the tax system The threat that ESST pose to the integrity of the tax system is significant and IR has an obligation to honest businesses to stamp out its use. There's no other purpose to ESST other than to facilitate tax evasion or money laundering. They're being used globally to systematically alter point-of-sale data collected to understate or completely conceal revenue to evade tax. ESST work by targeting the integrity of transactions, software, internal memory, external filing, or reporting to delete, change, or simply not record selected sales data and transactions. Background A civil penalty and two new offences were introduced in 2022 in relation to involvement with ESS tools: • New section 141EE establishes the ESS penalty of $5,000 for the acquisition or possession of a suppression tool. • New section 143BB establishes an offence of manufacturing or supplying a suppression tool. A person convicted of such an offence is liable to a fine of up to $250,000. • New section 143BC establishes an offence of acquiring or possessing a suppression tool. A person convicted of such an offence is liable to a fine of up to $50,000.
Yahoo
09-05-2025
- Politics
- Yahoo
You deserve sick time no matter the size of your employer
The authors writes, "We cannot claim to be a national leader while telling thousands of workers their health and dignity are negotiable because of who signs their paycheck." (Photo by Getty Images.) Minnesota did the right thing in 2023 by passing earned safe and sick time for all workers. This was a powerful first step that affirmed a simple truth: No one should be fired, or risk the ability to feed themselves or their family, because of a short-term illness, the need to care of a sick family member, or because they've suffered domestic abuse, sexual assault, or stalking. It was a common sense step toward ensuring dignity for all workers, no matter where we live or what we do. This week, six members of the Senate DFL joined Republicans to put that promise in danger. On Tuesday, the Minnesota Senate passed amendments to take ESST away from more than 110,000 workers who have been earning and using earned sick and safe time for 16 months now, for no other reason than the size of their employer. In doing so, they sent a clear, troubling message: some workers count less than others. Let it be clear, sick is sick. It doesn't matter if you work in a small business in Minneapolis or as a farmworker in Greater Minnesota. It doesn't matter if you have four coworkers or 40. The need for paid time off to see a doctor, get out of an abusive relationship, or care for a loved one doesn't change based on the size of your workplace. It's a basic dignity that all Minnesotans deserve. But with these amendments, our lawmakers are creating a two-tiered system that leaves behind more than 110,000 Minnesotans, as well as the loved ones we care for. But this will wind up affecting all of us: The child care workers who nurture our children; the home care workers who take care of the most vulnerable among us; the farm workers who grow and harvest the food we eat. When we deny these workers the ability to rest, recover or care for loved ones, we don't just endanger their health — we compromise the well-being of our entire society. No community thrives when its families are forced to choose between their health and a paycheck. Undermining their protections is not just unjust — it's dangerous. These rollbacks are a direct blow not just to workers, but to the industries they claim to protect. Stripping away basic protections makes attracting and retaining workers harder, makes workplaces less safe, fuels public health risks, and undermines the stability families depend on. It's short-sighted and deeply unfair. For the last 16 months, ESST has allowed all workers to take care of themselves and their loved ones, and made them proud to work in a state where we look out for each other. As we think of these potential cuts, we are reminded of a story of a young father from Saint Cloud whose partner developed severe vertigo during pregnancy. He had to take on extra caregiving responsibilities for both her and their child, often stepping in when their daughter was sick. Having just started a new job without paid sick days, he was forced to choose between earning a paycheck and being there for his family, a choice that caused immense stress and heartache. These are the families that ESST was developed to protect. These are the painful stories that could again become reality if these carveouts become law. Luckily, the fight is far from over. The Minnesota House and Gov. Tim Walz now have a critical opportunity and a responsibility to do what the Senate would not: stand up for universal, common-sense protections and reject these harmful carveouts. They must listen to the voices of working Minnesotans who simply want the right to care for themselves and their loved ones without risking their livelihood. Minnesota promotes itself as one of the best states to live, work and raise a family. We fight for strong public schools, vibrant communities, and a commitment to fairness and opportunity. But policies like these carveouts chip away at basic worker protections and move our state backwards. We cannot claim to be a national leader while telling thousands of workers their health and dignity are negotiable because of who signs their paycheck. If we want to continue setting the standard for a thriving, equitable state, we must defend the rights that make that possible. Cutting corners on ESST doesn't just hurt workers — it weakens the foundation of what makes Minnesota great. No worker should be left behind. No exception should be made to basic dignity.
Yahoo
08-02-2025
- Politics
- Yahoo
Listening session lets employers voice concerns
Feb. 7—Minnesota legislators Reps. Dave Baker and Patricia Mueller were in Austin Friday morning at the Hormel Historic Home for a listening session. The reason for the session was to hear directly from local employers about their challenges and the impact of recent legislative challenges. The session was led by Baker, the committee chair for the Workforce, Labor and Economic Development Finance and Policy and was a chance for employers to give "real world" feedback on workforce and labor policies as well as an opportunity to shape conversations around future legislation. During his presentation, Baker addressed issues such as working together to make the state competitive, especially regarding border counties. In particular the session touched on concerns created by the Earned Sick and Safe Time (ESST), which went into effect in 2024 and requires employers to ensure paid sick and safe time that can be used by the employee who is sick as well as to care for a sick family member. However, for many small businesses this new law has been something of a burden as it adds excess financial strains. "We understand that we can't just repeal it (ESST), but we need to find something other than a one size fits all," Baker said. Some of the concerns raised included what employers can ask of employees, having difficulties with hiring some positions and jobs with highly grained positions that can not be filled by temporary employees. Mower County Administrator Trish Harren Gjersvik brought up the idea of looking for a way to opt out due to the county already having negotiated time off that meets high standards. Diane Baker, director of the YMCA at the Austin Area Community Recreation Center noted that the immediate goal should be to try and postpone the law so that there can be time to create customized plans that work for businesses of different sizes.
