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AUCKLAND – A 36-year-old Auckland businesswoman has been sentenced to 12 months of home detention after diverting over $2 million into personal accounts and failing to pay more than $560,000 in PAYE taxes, according to a ruling by the Auckland District Court.
Victoria Sabrina Kalapa, the sole director and shareholder of Gold Standard Scaffolding Ltd (GSSL), was convicted of serious tax offences following an Inland Revenue investigation into her company’s financial activities from 2019 to 2023.
The Case Against Kalapa
Kalapa appeared before the Auckland District Court on April 2, where she was sentenced to 12 months of home detention and ordered to pay $13,000 in reparations at $50 per week.
As the head of GSSL, which was liquidated in 2023, Kalapa failed to remit Pay As You Earn (PAYE) deductions to Inland Revenue for nearly four years. Despite GSSL receiving $4.5 million in deposits, records show the company made no meaningful PAYE payments, apart from a token $500.
Instead, over $2 million in company “drawings” were transferred directly to Kalapa’s personal bank accounts, along with nearly $500,000 in reported wages—all while tax obligations remained unmet.
Inland Revenue Investigation
The IRD launched an inquiry in July 2023 after red flags were raised regarding GSSL’s financial conduct. The investigation uncovered:
- $558,884.58 in unpaid PAYE taxes
- Minimal to no PAYE compliance from November 2019 to April 2023
- Funds consistently diverted for personal use
- A failed instalment plan due to missed payments
Inland Revenue emphasized that Kalapa deliberately prioritized personal enrichment over legal tax obligations.
A Warning to Other Business Owners
Inland Revenue authorities underscored that PAYE compliance is a legal duty, not a discretionary option. The case highlights how Inland Revenue is intensifying scrutiny on small business tax management and enforcement.
An IRD spokesperson noted:
“This prosecution sends a clear message: directors who misuse company funds and ignore their tax obligations will face serious legal consequences.”
Lessons & Legal Implications
This case reinforces the critical responsibility directors have in managing payroll taxes and ensuring PAYE deductions are correctly reported and remitted. Failure to comply can lead to:
- Criminal prosecution
- Personal liability for company tax debts
- Financial penalties and court-ordered reparations
Kalapa’s sentencing illustrates the increased willingness of New Zealand tax authorities to pursue enforcement in cases of deliberate non-compliance.
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