An Auckland man, Vaibhav Kaushik, has been sentenced to community detention for tax fraud after falsely claiming COVID-19 relief funds intended for struggling businesses.
Kaushik was sentenced in the Auckland District Court on 13 February 2025 after being charged with using a document to claim a pecuniary advantage.
In April 2020, the New Zealand Government introduced the Small Business Cashflow Loan Scheme (SBCS) to assist businesses impacted by the COVID-19 pandemic. The loan was aimed at supporting businesses that were ongoing and viable, and could only be used for business purposes—not for personal gain by shareholders or owners.
However, in July 2020, Kaushik applied for the loan under another person's name, and the funds were transferred to a bank account held in that person’s name. Immigration records revealed the named individual had left New Zealand seven years earlier and had not returned.
Inland Revenue’s investigation revealed that Kaushik had created the other person’s myIR account, filed an income tax return under that individual’s name, and submitted the loan application. Further investigation confirmed that the IP address used for both the income tax filing and loan application was linked to Kaushik’s home address.
Kaushik used a similar method to apply for a second loan under the name of another individual, who had left New Zealand in 2017 and never returned. Kaushik was found to have been assisted by an associate in India in both cases.
The $23,600 received was spent by Kaushik on personal items and gambling.
During sentencing, the judge noted that the offending involved elements of greed and rejected the defence lawyer’s request for a discharge without conviction. Kaushik was sentenced to six months of community detention, the maximum allowed under the law. The judge also ordered that Kaushik pay full reparation by 1 April 2025.
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