Companies
operating the Masala restaurant chain along with Masala management Supinder
Singh and Joti Jain negotiated an eight million dollar deal to settle a
proceeds of crime claim following investigations for tax fraud, immigration
fraud and labour fraud. This followed a
series of prosecutions against companies and individuals involved with Masala.
Investigations by
Inland Revenue and Immigration New Zealand identified widespread and systemic
tax evasion and immigration-related offending.
Action was taken under the Criminal Proceeds (Recovery) Act to seize
assets derived from criminal offending.
In an agreed settlement, 34 properties in Auckland, Waikato and Bay of
Plenty are to be sold with the net proceeds used to pay the multi-million
dollar settlement. These properties were
either sites for Masala restaurants or housing for staff. Outside the court settlement, Masala
investors have separately agreed how the eight million dollar cost will be
spread between themselves.
High Court approval of
this asset seizure does not stop Inland Revenue bringing criminal charges for
tax evasion.
Commissioner
of Police v. Investments Ltd – High Court (28.02.17)
17.018