TAX EVASION.

Auckland Star, Volume LXVII, Issue 186, 7 August 1936, Page 8

TAX EVASION.

FURRIER'S LAPSE.

REVENUE DEFRAUDED.

" SERIOUS AND DELIBERATE."

i TTNES TOTAL £50.

Two summons charges of evading payment of part of the Sales Tax on goods sold in May and August, 1935, by altering amounts shown in the duplicate receipt from £27 10/ to £7 10/ and £24 to £4, with intent to defraud the revenue, were brought against D. Stern (Furs), Limited, in the Police Court before Mr. Wyvern Wilson, S.M., this morning. Duplicate Receipts Altered. Mr. R. Meredith, who prosecuted on behalf of the Taxation Department, said an inspection of the firm's books showed that duplicate receipts had been tam-1 pered with, one having been altered from j £27 10/ to £7 10/ and the other from £24 to £4. The matter was pressed ' by the sales tax inspector and the original receipts were secured from the | customers, one showing the amount as I £27 10/ and the other as £24. In both cases the lesser amounts had been used by the firm in the compilation of the returns and the sales tax paid on that. "These two cases are frauds on the revenue and cannot be described as otherwise than deliberate and serious," said Mr. Meredith. "These offences are very difficult, to detect and I would ask | for the imposition of a heavy penalty." 'It cannot be gainsaid that these are serious matters," stated Mr. R. P. Towle, who represented the defendant firm. "It

is extraordinarily difficult to understand the conduct of my client who has this small company, which is really a oneman firm, for his character and reputation is beyond reproach. He came out from England some years ago. He is an experienced furrier, but not an experienced bookkeeper." Foolish Conduct. Counsel added that competition had been very keen in the fur trade, and defendant had foolishly fallen into adopting this practice in the two cases. | The alterations were clumsy, and it wa* j in Stem's favour that he made full and I frank disclosures when he was seen by | the inspector. He had only saved £1 ■ in each case, therefore it was difficult ! to explain his conduct. "However, it I may be that some people do not regard I the payment of taxes in qtfite the same I l'ght as that of other debts," said Mr. Towle. "That is quite wrong, of course. Nevertheless, Stern is a man of standing in the community, as my inquiries from warehouses and others show. Undoubtedly the convictions will be a severe blow to his business reputation. He is not in a laTge way of business and his renutation will be very materially nfleeted by these convictions. There will be no trouble in the future and the tax will be paid."

Mr. Wyvern Wilson said it was no doubt a peculiar feature of offences against the revenue that persons of otherwise good character and reputation would endeavour to cheat the revenue or the Customs. The only way to deal with such persons tvas to treat the matter as a serious one and impose a substantial penalty. Stern was a man of ™od character, and this was his first offence. On each of the two charges he was fined £25 and costs.