Tax evader's $1.77m home was bought from NZ's single biggest fraudster
The Lower Hutt mansion that convicted tax evader Tao Li bought was previously owned by the man responsible for New Zealand's single biggest fraud, David Ross.
A $550,000 tax fraudster could serve his home detention in the Lower Hutt mansion he bought off the man responsible for the country's single biggest fraud.
Tao Li, also known as Adam Li or Adam Lee, was this week sentenced to 10 months' home detention for pocketing cash sales, money laundering and filing false tax returns.
The owner of Jacksons Cafe and Bistro in Petone, Lower Hutt, pleaded guilty to evading more than $550,000 in tax through what Inland Revenue lawyer Graham Tubb described as an "elaborate web of deceit".
Jacksons Cafe chef and owner Tao Li, also known as Adam Li or Adam Lee, evaded more than $550,000 in tax.
"He accumulated significant sums of money which should have gone towards providing services for the benefit of all New Zealanders."
READ MORE: Wife gets $900k from mansion sale
Li's address was listed as 105 Woburn Road, Lower Hutt, in Companies Office records, which was previously the home of David Ross who was responsible for a $115 million fraud.
Ross was in 2013 sentenced to 10 years and 10 months in jail for his $115 million fraud.
Ross, whose company Ross Asset Management fleeced at least 700 investors, was jailed in 2013 for 10 years and 10 months for running a ponzi scheme.
Ross' assets were sold to recoup money, of which the $2m family home was the most valuable.
Li and two others bought the house in early 2014 for $1.77m. Half the money went to Ross' defrauded investors, the other half to Ross' wife, Jillian.
The mansion has a swimming pool, seven bedrooms, five bathrooms, and a separate "cottage" sleepout with kitchen.
An IRD spokesman would not comment on where Li would spend his home detention, but said his offending occurred over five years – beginning before Li bought the house.
Li said in 2014 he would not talk about buying the house, but the real estate agent who handled the sale said it was bought by a young family.
The IRD said on Friday it found more than $180,000 in cash at Li's home on one visit by investigators.
Business records showed an unusually small percentage of sales were paid for in cash, and Li went to significant lengths to move funds around.
"Another disturbing feature of the offending was the active participation of Mr Li's tax agent, who has already been dealt with by the court," Tubb said.
"This is far from acceptable in a functioning tax system."
Tubb said the sentence should send a strong message to those who try to cheat the tax system.
Li would pay the outstanding money back, IRD said.
"His actions were deliberate and cynical."
- Stuff
