By Kalino Latu

Copyright kanivatonga

Pukekohe, New Zealand — A Tongan woman has been sentenced to nine months of home detention after pleading guilty to evading nearly $1.5 million in taxes through her labour contracting business.

Haitelenisia Kaumavae, the owner of M & H Kaumavae Ltd, appeared in the Pukekohe District Court on 23 September.

She admitted to four representative charges of tax evasion, including aiding and abetting her company in failing to meet its tax obligations.

According to Inland Revenue, Kaumavae’s offending was “repetitive and premeditated.”

Over a period of several years, she failed to file income tax returns for four consecutive years.

During a three-year period, she either failed to submit GST returns or submitted false ones. Additionally, she did not file PAYE returns for a total of 40 months.

The total amount evaded was $1,487,359.41, comprising GST, PAYE, and income tax.

A review of bank records showed that M&H issued invoices to growers for labour services, which included GST and a 15% withholding tax deduction—yet the taxes were never paid.

Despite the seriousness of the offence, the judge noted that Kaumavae did not personally profit from the scheme, citing her cultural obligations as a mitigating factor.

She was sentenced to nine months of home detention, followed by six months of post-detention conditions, and ordered to pay $6,500 in reparation, with payments to be set by the court registrar.

Inland Revenue described the case as a “wilful example of repeated fraud,” highlighting the importance of accountability in protecting public funds.