INCOME TAX CASES.

Auckland Star, Volume LVII, Issue 144, 19 June 1926, Page 11

INCOME TAX CASES.

TAURANGA TAILORS FINED €20 FOR MAKING FALSE RETURNS. Formerly in partnership at Tauranga as tailors Percy Edward Carter and Charles Ernest Gibberd were charged at the Police Court yesterday with making a false return in relation to the income of Carter and Gibberd for the year ending on February 28, 1921. Mr. V. N. Hubble, who prosecuted. on behalf of the Commissioner of Taxes, stated that the information was laid on the very last day on which it'could have been laid. An assistant income tax inspector, Claude Ronald Richardson, said that, as a result of mis-statements in tlie returns made by defendants, Gibberd had been assessed for £7 5/10, whereas the amount should have been £73 2/4 and Carter for £62 11/, whereas the amount should have been £161 5/9. In answer to Mr. Gould, who appeared for defendants, witness stated that the correct returns had been given in instances where a mis-statement would have been simple. Mr. Cutten, the magistrate, asked Mr. Hubble what would be the attitude of the Department if the Court took a serious view of the case. Mr. Hubble replied that the Commissioner of Taxes acted quite independently. However, it was possible that if a heavy penalty were inflicted the Department would fix a heavy assessment, i Mr. Cutten said he found himself compelled to take a serious view of the cases in respect of both defendants. Carter had made the false returns for an obvious motive. Although it had been stated that Gibberd left all the accounting work to Carter, it was impossible, when both were doing so well, that he should imagine he could get away with an income tax of £7 5/10. The maximum penalty was £100, but Mr. Cutten had known worse cases. Each defendant would be convicted and fined £20, plus costs 7/ and solicitor's fee, £3 3/.