A former Tauranga City councillor is facing a raft of serious tax charges, with allegations some of the offending occurred during his turbulent term in office. Andrew Hollis, 54, appeared in the Tauranga Registrar Court last week on 35 charges laid by the Inland Revenue Department (IRD) under the Tax Administration Act 1994.
The charges encompass a five-year period, alleging multiple forms of tax evasion and fraud. Court documents show the alleged offences took place in Tauranga between January 2020 and September 2024. This timeline indicates that some of the alleged criminal activity coincided with Mr Hollis’s tenure as an elected member of the Tauranga City Council.
Specifically, Mr Hollis faces five charges of evading or attempting to evade the payment of income tax for the financial years ending between 2020 and 2024. He is also charged with 27 counts of evading or attempting to evade GST payments between November 2019 and March 2024. The combined maximum penalty for these offences, if convicted, could result in significant prison time and financial penalties, with each charge carrying a potential sentence of up to five years imprisonment and/or a fine of $50,000.
Allegations of Working for Families fraud
In addition to the income tax and GST charges, Mr Hollis faces three charges of knowingly providing false or misleading information to Inland Revenue with the intent to receive Working for Families Tax Credit payments he was allegedly not entitled to. These charges pertain to the tax years ending in 2020, 2021, and 2022.
The Working for Families scheme is a government financial assistance package designed to support low-to-middle-income families with dependent children. The allegations that a city councillor and business owner attempted to wrongfully claim these credits add another dimension to the case. The integrity of New Zealand's tax and social support systems relies on accurate self-reporting, a responsibility that is arguably heightened for those holding public office.
Following his brief court appearance last Thursday, Mr Hollis was remanded on bail and is scheduled to reappear in court on May 7, where he is expected to enter pleas to the charges. Inland Revenue has declined to comment further on the specifics of the case while it is before the courts.
A tumultuous time in local government
Mr Hollis was elected to the Tauranga City Council in October 2019. His time in council was marked by significant turmoil, culminating in the Government taking the unprecedented step of sacking the entire elected council in late 2020. Citing "significant governance problems", the Minister for Local Government appointed a four-person commission to run the city, an arrangement that remains in place today.
The period was a challenging one for the city, with the commission tasked with addressing major infrastructure and governance deficits. While Mr Hollis was part of the council that was dismissed, these new charges relate to his personal financial conduct rather than his duties or decisions as a councillor. After his removal from council, Mr Hollis made several unsuccessful runs for other public offices. The case follows other instances of financial crime prosecution in the region. Earlier this year, Ford vows action after 157 inmates improperly released from Ontario jails, demonstrating a continued focus by authorities on financial compliance in the Bay of Plenty. In a separate case, a Tauranga fitness trainer was jailed for a $142,000 tax fraud scheme.
Business collapse and High Court action
Separate from the tax charges, Mr Hollis is also contending with legal issues stemming from his collapsed bullion trading business, Guardians of Gold Ltd. The company was placed into voluntary liquidation in August of last year, followed by a receivership the next month. The collapse has left dozens of creditors out of pocket.
Receivers for the failed company have since filed a High Court application seeking a ruling on the ownership and treatment of an estimated $250,000 worth of bullion inventory. The case, which involves 34 unsecured creditors, is scheduled for a hearing in the High Court at Tauranga on May 25. This legal proceeding will run parallel to his criminal case, adding another layer of complexity to Mr Hollis’s legal troubles.
The Tax Administration Act 1994, which can be viewed on the Inland Revenue Department's website, forms the cornerstone of the country's tax laws and is designed to ensure all individuals and companies contribute their fair share. Mr Hollis's upcoming court appearances in May will be the next step in determining the outcome of both the criminal charges and the civil dispute over his former company's assets.
