R v Easton

In the High Court of New Zealand, Collins J sentenced Stuart David Easton on 22 counts of aiding and abetting three companies that failed to pay PAYE deductions to the Commissioner in 2008 and 2009. The total amount of unpaid PAYE was determined to be $204,213.03, although the Crown suggested it was slightly less at $199,292.98. The three companies involved were part of the Easton group, which faced significant financial challenges in 2007. Despite these challenges, Easton was found to have genuinely attempted to keep the companies afloat and ensure they met their liabilities, as evidenced by various payments made to the IRD.

The primary legal issue the court had to decide was the appropriate sentence for Easton, considering his role as a first offender with otherwise good character, the financial crisis faced by his companies, and his intent to meet the companies’ debts. The court also had to determine the appropriate amount of reparation to be paid to the IRD, considering the potential financial recovery from the liquidation of the companies and the need to ensure the IRD received no more in reparation than was owed in outstanding PAYE.

Collins J decided that fines would be the appropriate punishment, given Easton's otherwise good character, his intent to meet the companies’ debts, and the financial crisis faced by his companies. The court imposed a total fine of $66,000 and ordered Easton to pay $140,000 in reparation to the IRD, subject to review if the IRD received more than $60,000 from the liquidation process. The reparation order would not take effect until the liquidation of the three companies was completed.