The
High Court upheld a proceeds of crime restraining order lodged against
Christchurch properties owned by a brothel owner suspected of tax evasion
Fan Jiang unsuccessfully challenged
interim restraining orders imposed on five properties she owns in England
Street, Regalwood Close and Nursery Road.
A challenge to police seizure of $71,640 cash from her England Street
brothel also failed.
The High Court was told Inland Revenue
suspects Ms Jiang failed to declare at least $799,200 income from brothel
earnings and rental income. For the five
tax years ending March 2014 Ms Jiang’s declared income averaged $13,100 per
year. That of her late husband averaged
$16,700 per year. Ms Jiang said the
Criminal Proceeds (Recovery) Act was never intended for use in tax cases. She alleges the interim restraining orders
are a tactic to force a confession. She
has not been charged with any offences under the Tax Administration Act. Justice Mander ruled tax evasion can amount
to significant criminal activity justifying procceds of crime restraining
orders.
Ms Jiang was convicted in December 2015
and fined $10,000 for breaching the Resource Management Act after operating her
business outside permitted hours and then ignoring an abatement notice.
Commissioner
of Police v. Jiang – High Court (21.11.16)
17.001