A business owner in Christchurch, New Zealand, who lost nearly NZ$900,000 in casinos was handed a three-year sentence after admitting fraud and tax evasion. The man claimed he had no problem with gambling but the judge at Christchurch District Court expressed his suspicion that the businessman was, indeed, a gambling addict.
Chung Tuyen La, a business owner from Christchurch, was sentenced to three years in prison and ordered to pay $818,400 in reparations on Thursday. La, who was a partner in a local business that sold wholesale chicken and fish to other firms, admitted he had been providing false information to the Commissioner of Inland Revenue in order to evade paying $900,000 in tax. The man was hiding financial information covering a seven-year period, in which he had received funds from gambling.
Documents presented before the court also reveal that over several years, La lost a total of $895,014 in casinos. The businessman was faced with charges over 16 false GST returns and five income tax returns, which had been filed between 2009 and 2014. The scheme was working through the business he was a partner in, Wycola Chicken, which later became a company. He transferred money from the partnership to his personal bank accounts, as well as to the bank accounts of his family members.
In addition, investigators found out that several cheques, originally intended for Wylola Chicken, were sent out to La instead. The Inland Revenue Department explained that the businessman completed some of the cheques himself before giving them to his customers to sign. In other cases, the invoices were paid to his personal bank accounts. The evidence suggests that all this money was spent in casinos.
Gambling Addiction as a Reason for Criminal Behaviour?
According to the investigation led by the Inland Revenue Department, La’s total loses in casinos totalled $895,014. This massive amount that has been spent on various gaming machines and other games of chance over a period of several years suggests that the former business owner has most likely developed a gambling addiction, according to Judge Brian Callaghan.
During a pre-sentence interview with his probation officer, however, La denied being a gambling addict, stating that his regular visits to several casinos were for “social and relaxation reasons”. Still, compulsive gambling has been linked multiple times to a wide variety of psychological problems, depression, family issues, and debt. Experts have also warned of the harmful impact of gambling on vulnerable individuals and communities, explaining that in many cases, it triggers anti-social and criminal behaviour.
Chung Tuyen La’s total tax liability is estimated at $2.75 million. This includes the main tax, as well as interest and penalty fees. New Zealand’s Inland Revenue Department may also add evasion penalties.
- Author
Olivia Cole
