INCOME ASSESSED

Auckland Star, Volume LXXII, Issue 247, 18 October 1941, Page 6

INCOME ASSESSED

r TAX RETURNS NOT MADE IMPORTER FIXED £31 Prosecuted on summons in the Police Court before Mr. J. H. Luxford, S.M., Clarence Lionel McDonald, for whom Mr. Walker appeared, pleaded guilty to four charges of failing to make returns of income for the years ended March 31, 1938; 1939, 1940 and 1941. Mr. Rosen, who prosecuted for the Commissioner of Taxes, said defendant was an importer of text books for farming people and had been in this business at least 15 years. McDonald, who had a wife and five children, travelled through the country, calling on farmers, and. with his wife and family, stayed at hotels. He apparently had no fixed place of abode. After his affairs were investig?ted by an .inspector of the Income Tax Department, in May. he asked the Commissioner for an appointment but did not keep the appointment which was made. Mr. Rosen said the Department made assessments of McDonald's inthe last ten years. These totalled £179. with penalties. In addition, McDonald had not made declarations for unemployment and later, Social Security purposes, and the amount due for tnese was assessed at £411, so that in %11 McDonald owed £590 for taxes. "This is a most flagrant case, and I am instructed to ask for a substantial penalty," continued Mr. Rosen. "It seems Incredible that he did not know he had to furnish returns " On defendant's behalf, Mr. Walker said McDonald had a wife and six children. Because of the import restrictions and the petrol restrictions his business had been reduced. McDonald considered the amount of the assessment to be much in excess of his real position. Remarking that the case was certainly a flagrant one, Mr. Luxford imposed a fine of £25 together with Court costs and solicitor's fee, £3 3/ on one charge, and fines of £2 plus solicitor's fee on each of the other three charges.