While not conceding he is guilty of tax evasion, Yu Ping Gong agreed to surrender six tenanted properties having a net value of $4.9 million to settle tax claims of $1.23 million. In a court-approved settlement under the Criminal Proceeds (Recovery) Act, he gets to keep two properties including his home at Sunnyhills in Manukau, south Auckland.
An Inland Revenue investigation identified Mr Gong and taxpayers associated with him owed tax of over $1.2 million for the five year period ending March 2016 while declaring income of only $929. Inland Revenue threatened prosecution for tax evasion. It claims Mr Gong purchased properties now having a gross value of $9.1 million out of undeclared income. Net equity was estimated at $7.7 million.
While denying tax evasion, Mr Gong told the High Court he wished to ‘regulate’ his tax affairs. Inland Revenue agreed it would take no further action for alleged tax evasion. In return, Mr Gong forfeits to government all his equity from six properties in the Auckland suburbs of Newmarket, Farm Cove, Flat Bush, Avondale, Mt Eden and Bucklands Beach. Mr Gong gets to keep two properties having a gross value of some $2.9 million.
Inland Revenue agreed to keep confidential all evidence it collected during its tax investigation. In tax returns, Mr Gong describes himself as a plumber. News reports speculate Inland Revenue’s investigation into Mr Gong followed publicity attached to criminal investigations in China and Canada into activities of his brother, Xiao Hua Gong.
Commissioner of Police v. Gong – High Court (25.07.18)
18.147