Full Breakdown
Hell’s Pizza Owner Sentenced to Home Detention for Tax Evasion
By Drooid · · How we work
Sentencing and Core Offences
Paraparaumu-based restaurateur Shi, who operates SWB Foods Ltd trading as Hell’s Pizza, received a 10-month home detention sentence. Judge Andy Nicolls emphasized that non-payment of taxes is “not a victimless crime,” citing deterrence and denunciation as key factors in the sentencing. Shi was convicted of failing to provide GST, company and personal income tax returns, and of aiding the franchise by withholding PAYE deductions from staff wages.
Background of Non-Compliance
SWB Foods Ltd has been trading since 2014. An Inland Revenue audit that began in June 2024 uncovered a tax debt of approximately $400,000. The audit revealed that Shi stopped filing GST returns for the business in 2020, leaving $185,143.86 in outstanding GST. PAYE deductions were taken from employee wages between July 2019 and November 2022 but were never remitted to Inland Revenue.
Financial Scope of the Offences
- Annual sales reported between $687,708 (2017) and $1,390,341 (2024).
- Unpaid PAYE arrears totaled $194,295.50.
- Five years of income-tax returns (March 2020-March 2024) were not filed, with an estimated liability of $124,415.77.
- In November 2025 Shi filed all overdue GST and income-tax returns, amounting to $503,855.13, and repaid $100,000 before sentencing.
The net loss to Inland Revenue after repayments was $403,855.13.
Official Response
Inland Revenue noted that “PAYE arrears were deducted from the company accounts under Section 157 of the Tax Administration Act, and two statutory demands were issued, which together resulted in a portion of the PAYE arrears being paid.” — Inland Revenue “PAYE arrears were deducted from the company accounts under Section 157 of the Tax Administration Act, and two statutory demands were issued, which together resulted in a portion of the PAYE arrears being paid,” — Inland Revenue
The agency highlighted the importance of compliance and indicated that the statutory demands helped recover part of the outstanding PAYE.
Verbatim Quote
“PAYE arrears were deducted from the company accounts under Section 157 of the Tax Administration Act, and two statutory demands were issued, which together resulted in a portion of the PAYE arrears being paid,” — Inland Revenue “PAYE arrears were deducted from the company accounts under Section 157 of the Tax Administration Act, and two statutory demands were issued, which together resulted in a portion of the PAYE arrears being paid,” — Inland Revenue