Tax evasion triggers loss of LBP status

Dishonesty convictions unearthed during LBP investigation lead to Building Practioner Board ordering longest licence cancellation to date

Wairarapa builder Cecil Sinclair lost his status as an LBP after the Building Practitioners Board learnt of his convictions on 91 charges of tax evasion. These were uncovered during the investigation process, which took place after a complaint was received against Mr Sinclair.

The Board heard that Mr Sinclair’s tax evasion spanned a ten-year period, from 2001 to 2011. Mr Sinclair has a further 11 convictions in his criminal and traffic  history going back as far as 1967, including five dishonesty offences.

The Board considered that Mr Sinclair’s convictions reflected adversely on his fitness to carry out and supervise building work, which often involves handling client funds or entering into credit arrangements.

Registrar of Building Practitioner Licensing Paul Hobbs says the Board’s decision should send a clear message that dishonest or fraudulent behaviour is not acceptable in today’s building industry.

“It’s important consumers are able to feel confident in the integrity of their licensed builder, and decisions such as this one help protect the strength and reputation of the industry as it grows,” he said.

Without LBP status, Mr Sinclair can no longer do or supervise restricted building work. This is work that is critical to the structure and durability of a residential building.

As part of the ruling, Mr Sinclair cannot apply to be relicensed as an LBP for at least three years – the longest cancellation period the Board has imposed to date. His name has been removed from the LBP register and he has been ordered to pay costs.

The LBP approval process currently includes a number of checks and balances, but not criminal record checks which is why Mr Sinclair’s convictions weren’t picked up when he acquired his licence.

Hobbs says that some other licensing schemes do carry out a criminal record check, and the LBP team is currently considering whether or not it should be part of the LBP application process.

This decision follows other significant Board decisions in 2015, where the Board took similar steps to discipline LBPs. Details of these decisions can be found on the MBIE Corporate website.

To read about the complaint and decision in full, see BPB Complaint No. C2-01244.