A Waikato sharemilker has escaped a prison sentence, but still faces nine months of home detention, after being convicted of cheating on his tax returns and making fraudulent claims for Covid support payments.

The Inland Revenue Department said in a statement this afternoon Gordon Kenneth Morris was sentenced in the Hamilton District Court on February 1.

He had been charged with making fraudulent applications for the Small Business Cashflow Scheme (SBCS) and Resurgence Support Payments (RSP), as well as false GST and income tax returns.

Morris’ applications saw his companies receive $27,200 from the SBCS. His application for $8800 in RSP support was declined.

Inland Revenue said in its statement the schemes were “implemented under urgency using a ‘High Trust’ application model to ensure businesses could access funds to support the business quickly”.

Later analysis of Morris and his wife’s bank statements showed their tax returns since April 2018 “grossly understated” their income and overstated expenses, leading to underpaid income tax and GST of $109,565 and $103,012 respectively.

Inland Revenue said the couple had undertaken no business activity since January 2020.

Funds obtained from the SBCS and wage subsidy scheme were withdrawn in cash and used for online gambling. The couple were found to have spent $336,464 in online casinos between April 1, 2018, and October 20, 2020.

Morris was ordered to attend counselling and a Salvation Army-run scheme for problem gamblers along with paying reparations of $20 per week.