Christchurch man jailed after evading nearly $1.4m in company taxes

A Christchurch businessman has been sentenced to two years and three months in prison after failing to pay nearly $1.4 million in company taxes to Inland Revenue.

According to a report by 1News, Daniel Robert Clarke, associated with property maintenance company Phil Clarke and Son Limited, was sentenced in the Christchurch District Court on Friday after being found guilty of 21 charges of aiding and abetting and 15 charges of tax evasion.

Clarke had been deducting PAYE, student loan repayments and KiwiSaver contributions from employees' wages but failed to pass the money on to Inland Revenue on 22 occasions.

He took over the company's operations in May 2022 and initially met its tax obligations. However, from January 2023, he began failing to make the required payments, as reported by 1News.

The company accumulated $610,005 in unpaid GST between early 2023 and mid-2025, covering 15 GST periods.

Inland Revenue said the failure to make the payments was deliberate, with Clarke choosing to use the company's funds for other purposes.

"It was a deliberate decision by Clarke to pay creditors and employee wages rather than to pay the GST," IR said, as quoted by 1News.

The tax authority said Clarke also used company funds to cover business expenses as well as personal costs.

"Clarke also used the available money towards paying company expenses and transferred money for living expenses and home renovations. When the renovated house was sold, none of the proceeds were used to reduce the amount he owed to Inland Revenue," as quoted by 1News.

Judge Tom Gilbert heard that Clarke's use of unpaid tax as working capital and for personal income gave him an unfair financial advantage over businesses that paid their taxes on time.

According to 1News, between January 2023 and July 2025, Clarke personally received almost $2 million from Phil Clarke and Son Limited.

Despite this, almost $800,000 remains outstanding. The court heard the company had been able to meet its required payments when they fell due.

Phil Clarke and Son Limited was placed into liquidation on July 8, 2025. Clarke was later declared bankrupt on April 8, 2026, as reported by 1News.