Commissioner of Police v Gong

The case of Commissioner of Police v Gong involved the Commissioner of Police, Yu Ping Gong, and several interested parties in a dispute concerning the forfeiture of assets under the Criminal Proceeds (Recovery) Act 2009. The Commissioner alleged that Gong and David 22 Trustee Limited engaged in tax evasion, acquiring multiple residential properties worth significant sums with the resultant equity from unreported income. Gong denied the allegations but agreed to a proposed settlement without admission of liability. The High Court of New Zealand was required to decide whether the settlement was consistent with the purposes of the Act and in the overall interests of justice.

The court found that the settlement was consistent with the Act's purposes, primarily because it would result in the forfeiture of a significant portion of the equity in the restrained properties and payment of outstanding tax liabilities. Additionally, the settlement would save time and cost for all parties by avoiding a contested hearing. The court recognised the risk inherent in pursuing a contested hearing, given uncertainties around the tax evasion tainting property and potential claims for relief from forfeiture by Gong or other interested parties. The settlement also provided Gong with certainty regarding the outcome and allowed him to retain his home and some other properties.

The court approved the settlement, allowing for the sale of six of the eight restrained properties, with the proceeds used to repay debts, satisfy tax liabilities, and forfeit the excess to the Crown. Gong was also required to make an additional payment of $175,000, which would be forfeited. The court also ordered that certain properties would be released from restraint upon payment of specified sums. The Commissioner agreed not to pursue further claims against the parties regarding the specified tax periods and to return seized electronic equipment. The court concluded that the settlement reflected a pragmatic compromise and was in the overall interests of justice.