INCOME-TAX.

Press, Volume LXI, Issue 18369, 30 April 1925, Page 5

INCOME-TAX.

FIVE CHARGES AGAINST * BUILDER. FIXED £250.

Before Mr W. Mcldruni. S.M., in the Magistrate's Court yesterday, Robert Duncan Benjamin, builder, of Christehurch (Mr M. J. Gresson), was proceeded against by the Commissioner of Taxes (Mr A. T. Donnelly) on charges of having wilfully or negligently made false returns in relation to his income for the years euded March 01st, 1920, and 1021, and with having failed to furnish a return in the prescribed form sotting forth a complete statement of all the assessable income derived by him duriug the rears ended March 31st, 1922, 1920, 1924. Benjamin, through his counsel, pleaded guilty to all five charges. Benjamin was described' by counsel for the Department as being a builder in a large way in the city. It was admitted that the returns for the years 1920-21 were false. He regretted to say that the offences were very grave. The position was that in 1920-21 Benjamin sent in false returns, and thereby defrauded the Department of a substantial sum. During the three remaining years he had made no return at all, although ho must have known, by the magnitude of his operations, that he should have made a return.

Mr Gresson said that Benjamin speculated in a large way. He bought land, built houses on it, and re-sold. In 192021 the discrepancy was caused by the defendant supplying returns of his ordinary profits as a builder. Ho did not keep proper books, and it was impossible to ascertain his income for any given year. The Department inspected the defendant's books and received the information they required. Five years were taken by the Department, divided up, and amounts assessed to single years. His actual income could not be ascertained with any degree of accuracy. There was failure to send in returns, as opposed to wilful fraud. There had been a degree of muddle in defendant's books.

The Magistrate said that certainly there had been a muddle in the bookkeeping, and the result was inability to ascertain the exact position. But it had always been open to the defendant to engage an experienced accountant. He must treat the offences as deliberate. The Department would call on the defendant to pay penal taxes, and he had only himself to blame for that. To Mr Donnelly: What is the maximum penalty?—£ioo. The Magistrate: He will be fined £SO and costs on each charge.