Latest news with #Lee19
Otago Daily Times
4 days ago
- Business
- Otago Daily Times
Snap decision saved livelihoods
Out of a job and in tears in the morning and back at work and running their own company by the afternoon. It has been an emotional journey for some of the victims of a bankrupt Southland caterer Debra Monteith. Alliance Lorneville Plant freezing works caterers Karen Dickson, Nikhil Rane and Sarah Ward had no idea the company they worked for was about to be liquidated in early 2024 until someone else who worked at Lorneville told them they had seen it in the news. Monteith, their former boss, made national news this week when she was convicted and sentenced in the Invercargill District Court for failing to account for PAYE tax of more than $800,000. When her company, Lee 19, was put into liquidation with liabilities of more than $2 million, the trio had been left suddenly unemployed. Long-time caterer Mrs Dickson said they were stumped for a moment, but only briefly. "It was like, what do we do? I was already 62 ..." But they knew how to cater and quickly came to the conclusion there was nothing for it but give it a go themselves. They found out Alliance Lorneville's management was on board if they formed a new company and Karen's Cafe was born more or less the same day, while the dust was still settling around them. In doing so the women secured not only their own jobs, but those of nine other staff too. Ms Rane said that February day when they decided to form their own company had been quite something. "On Thursday morning, we went to work as an employee. Thursday when we came back home, I was an employer." Single mother of four Miss Ward said there were a lot of tears when she first realised she was without a job. Her main worry was how she would pay her bills, she said. But there was not a lot of time to think about it and all three women went straight into "we need to get stuff done mode". "When you have kids, you've got to figure it out. But thankfully Alliance gave us that opportunity and we're still there. "Sometimes you just have to take the risk." Since their snap decision, Karen's Cafe had grown and now also did off-site catering work which helped to keep business thriving during the freezing works' offseason. While they had been paid regularly and on time up until Lee 19 went in to liquidation, the trio, along with Monteith's other staff, had all lost wages, including their final pays and holiday pay. Another unsecured creditor, Southland Racing Club president Sean Bellew said the club had been left about $10,000 out of pocket by Monteith, who had been using their Ascot Park Raceway kitchen to operate a business that provided school lunches and catering for the Ascot-based racing clubs. He said the club had parted ways with Monteith before the liquidation as they had already been experiencing issues. Monteith admitted using the PAYE money over three years from 2021 to fund the business's operations, including food costs. The court also heard she personally benefited by more than $300,000 over the same period, although she did not receive a formal salary and that Lee 19 also received over $780,000 in Covid-19 support payments during the same period. Monteith was sentenced to 11 months' home detention. By Toni McDonald
RNZ News
5 days ago
- Business
- RNZ News
Tax evader leaves $2 million trail of debt
By Steve Hepburn of Photo: ODT A tax-evading Southland school caterer has left a $2 million trail of debt after her company went bust. Debra Lee Monteith appeared in the Invercargill District Court on Tuesday and was sentenced to 11 months' home detention on a single representative charge of aiding and abetting her company in failing to account for PAYE between March 2021 and February 2024, Inland Revenue said in a release. That just added to her troubles after her company, Lee 19, was put into liquidation in March last year, with questions over third-party loans and operating a lawnmowing business under the company's name, which was running contracts while in liquidation. Her company stopped paying PAYE tax for nearly three years and defaulted on a debt repayment scheme. Inland Revenue had applied to put her in liquidation last year, which was granted. All up, the company had assets of $99,899 and liabilities of $2,048,785. Lee 19 was primarily involved in food catering, including the Ministry of Education's Ka Ora, Ka Ako Healthy School Lunches Programme and catering at the Alliance Lorneville meat processing plant. The latest liquidators' report said Inland Revenue was one of the preferential creditors, who were collectively owed $1,106,877, unsecured creditors were owed $843,336, while secured creditors were owed $181,482. In the latest liquidators report, published in April this year, the director of the company advised the company was operating two businesses: a catering business and a canteen. The director also advised the company had been used to operate her ex-partner's lawnmowing business. Initially, the director advised of an intention to purchase some of the company's assets. Due to the valuations the liquidators received, those purchases were declined by the liquidators. All remaining company assets were sold to one party. The liquidators were also considering a claim for an unrelated third party which had a contract with the lawnmowing business in the name of the company. The contract was still operating after the liquidation, with questions about who was receiving payments. A claim was also issued for an overdrawn current account against the previous director. No response was received. A claim was also made on a third-party loan but no-one could be located and it became uneconomic to pursue. Inland Revenue said in its statement that in 2019, Lee 19 registered as an employer and began paying its workers. The next year, several employees phoned Inland Revenue stating their KiwiSaver deductions were not being paid. No PAYE returns were filed until 2020, when returns for seven PAYE periods were made all at once with $82,894.86 (excluding penalties and interest) immediately due and payable. Monteith entered into an instalment arrangement in 2020 for the debt, but this was cancelled in 2022 because of missed payments. Then the company stopped paying PAYE entirely from March 2021 until February 2024. The PAYE not accounted for over the period totalled $801,928.79. Monteith told Inland Revenue the PAYE was used to keep the company afloat and pay for food costs. Her personal expenses were paid out of the company's finances and her groceries were taken from the company's pantry. Monteith benefited by just over $300,000 between 2020 and 2024, although she was not otherwise taking a salary from the company. Lee 19 also applied for and received more than $780,000 in Covid-19 support money from various schemes. The company, at Monteith's direction, was receiving significant taxpayer support while at the same time not meeting its own tax obligations. Monteith, who ran four other companies since the late 1980s, was made bankrupt in 2013. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Otago Daily Times
5 days ago
- Business
- Otago Daily Times
Tax evader leaves $2 million trail of debt
A tax-evading Southland school caterer has left a $2 million trail of debt after her company went bust. Debra Lee Monteith appeared in the Invercargill District Court on Tuesday and was sentenced to 11 months' home detention on a single representative charge of aiding and abetting her company in failing to account for PAYE between March 2021 and February 2024, Inland Revenue said in a release. That just added to her troubles after her company, Lee 19, was put into liquidation in March last year, with questions over third-party loans and operating a lawnmowing business under the company's name, which was running contracts while in liquidation. Her company stopped paying PAYE tax for nearly three years and defaulted on a debt repayment scheme. Inland Revenue had applied to put her in liquidation last year, which was granted. All up, the company had assets of $99,899 and liabilities of $2,048,785. Lee 19 was primarily involved in food catering, including the Ministry of Education's Ka Ora, Ka Ako Healthy School Lunches Programme and catering at the Alliance Lorneville meat processing plant. The latest liquidators' report said Inland Revenue was one of the preferential creditors, who were collectively owed $1,106,877, unsecured creditors were owed $843,336, while secured creditors were owed $181,482. In the latest liquidators report, published in April this year, the director of the company advised the company was operating two businesses: a catering business and a canteen. The director also advised the company had been used to operate her ex-partner's lawnmowing business. Initially, the director advised of an intention to purchase some of the company's assets. Due to the valuations the liquidators received, those purchases were declined by the liquidators. All remaining company assets were sold to one party. The liquidators were also considering a claim for an unrelated third party which had a contract with the lawnmowing business in the name of the company. The contract was still operating after the liquidation, with questions about who was receiving payments. A claim was also issued for an overdrawn current account against the previous director. No response was received. A claim was also made on a third-party loan but no-one could be located and it became uneconomic to pursue. Inland Revenue said in its statement that in 2019, Lee 19 registered as an employer and began paying its workers. The next year, several employees phoned Inland Revenue stating their KiwiSaver deductions were not being paid. No PAYE returns were filed until 2020, when returns for seven PAYE periods were made all at once with $82,894.86 (excluding penalties and interest) immediately due and payable. Monteith entered into an instalment arrangement in 2020 for the debt, but this was cancelled in 2022 because of missed payments. Then the company stopped paying PAYE entirely from March 2021 until February 2024. The PAYE not accounted for over the period totalled $801,928.79. Monteith told Inland Revenue the PAYE was used to keep the company afloat and pay for food costs. Her personal expenses were paid out of the company's finances and her groceries were taken from the company's pantry. Monteith benefited by just over $300,000 between 2020 and 2024, although she was not otherwise taking a salary from the company. Lee 19 also applied for and received more than $780,000 in Covid-19 support money from various schemes. The company, at Monteith's direction, was receiving significant taxpayer support while at the same time not meeting its own tax obligations. Monteith, who ran four other companies since the late 1980s, was made bankrupt in 2013.
Otago Daily Times
5 days ago
- Business
- Otago Daily Times
Home detention for tax evasion
A tax-evading Southland school caterer has left a $2 million trail of debt after her company went bust. Debra Lee Monteith appeared in the Invercargill District Court on Tuesday and was sentenced to 11 months' home detention on a single representative charge of aiding and abetting her company in failing to account for PAYE between March 2021 and February 2024, Inland Revenue said in a release. That just added to her troubles after her company, Lee 19, was put into liquidation in March last year, with questions over third-party loans and operating a lawnmowing business under the company's name, which was running contracts while in liquidation. Her company stopped paying PAYE tax for nearly three years and defaulted on a debt repayment scheme. Inland Revenue had applied to put her in liquidation last year, which was granted. All up, the company had assets of $99,899 and liabilities of $2,048,785. Lee 19 was primarily involved in food catering, including the Ministry of Education's Ka Ora, Ka Ako Healthy School Lunches Programme and catering at the Alliance Lorneville meat processing plant. The latest liquidators' report said Inland Revenue was one of the preferential creditors, who were collectively owed $1,106,877, unsecured creditors were owed $843,336, while secured creditors were owed $181,482. In the latest liquidators report, published in April this year, the director of the company advised the company was operating two businesses: a catering business and a canteen. The director also advised the company had been used to operate her ex-partner's lawnmowing business. Initially, the director advised of an intention to purchase some of the company's assets. Due to the valuations the liquidators received, those purchases were declined by the liquidators. All remaining company assets were sold to one party. The liquidators were also considering a claim for an unrelated third party which had a contract with the lawnmowing business in the name of the company. The contract was still operating after the liquidation, with questions about who was receiving payments. A claim was also issued for an overdrawn current account against the previous director. No response was received. A claim was also made on a third-party loan but no-one could be located and it became uneconomic to pursue. Inland Revenue said in its statement that in 2019, Lee 19 registered as an employer and began paying its workers. The next year, several employees phoned Inland Revenue stating their KiwiSaver deductions were not being paid. No PAYE returns were filed until 2020, when returns for seven PAYE periods were made all at once with $82,894.86 (excluding penalties and interest) immediately due and payable. Monteith entered into an instalment arrangement in 2020 for the debt, but this was cancelled in 2022 because of missed payments. Then the company stopped paying PAYE entirely from March 2021 until February 2024. The PAYE not accounted for over the period totalled $801,928.79. Monteith told Inland Revenue the PAYE was used to keep the company afloat and pay for food costs. Her personal expenses were paid out of the company's finances and her groceries were taken from the company's pantry. Monteith benefited by just over $300,000 between 2020 and 2024, although she was not otherwise taking a salary from the company. Lee 19 also applied for and received more than $780,000 in Covid-19 support money from various schemes. The company, at Monteith's direction, was receiving significant taxpayer support while at the same time not meeting its own tax obligations. Monteith, who ran four other companies since the late 1980s, was made bankrupt in 2013.
Scoop
5 days ago
- Business
- Scoop
Southland Woman Sentenced On Tax Charges
Press Release – Inland Revenue No PAYE returns were filed until 2020 when returns for seven PAYE periods were returned all at once with $82,894.86 (excluding penalties and interest) immediately due and payable. A Southland woman, whose company was involved in a programme providing school lunches, was sentenced to home detention on tax charges. Debra Lee Monteith was sentenced in the Invercargill District Court on June 3rd to 11 months home detention on a single representative charge of aiding and abetting her company in failing to account for PAYE between March 2021 and February 2024. Monteith's company, Lee 19, was primarily involved in food catering including the Ministry of Education's Ka Ora, Ka Ako Healthy School lunches and catering at the Alliance Lorneville meat processing plant. In 2019, Lee 19 registered as an employer and began paying its workers. The next year several employees phoned Inland Revenue stating their KiwiSaver deductions were not being paid. No PAYE returns were filed until 2020 when returns for seven PAYE periods were returned all at once with $82,894.86 (excluding penalties and interest) immediately due and payable. Monteith entered into an instalment arrangement in 2020 for the debt, but this was cancelled in 2022 because of missed payments. Then the company stopped paying PAYE entirely from March 2021 until February 2024. The PAYE not accounted for over this period totalled $801,928.79. Monteith told Inland Revenue the PAYE was used to keep the company afloat and pay for food costs. Her personal expenses were paid out of the company's finances and her groceries were taken from the company's pantry. Monteith benefitted by just over $300,000 between 2020 and 2024, although she wasn't otherwise taking a salary from the company. Lee 19 also applied for and received more than $780,000 in COVID-19 support money from various schemes. The company, at Monteith's direction, was receiving significant taxpayer support while at the same time not meeting its own tax obligations. In March 2024, Lee 19 was placed into liquidation. Monteith, who ran four other companies since the late 1980s, was made bankrupt in 2013.
