TAX EVASION CHARGES

Press, Volume XCI, Issue 27612, 19 March 1955, Page 9

TAX EVASION CHARGES

DENIAL BY MARKET GARDENER DEFENDANT “COMPLETELY ILLITERATE” (New Zealand Press Association) AUCKLAND, March 18. Ah Cheung, a market gardener, who was stated to be unable either to read or write, appeared in the Magistrate’s Court at Auckland today on five charges of wilfully making false income returns. He pleaded not guilty to all the charges. After hearing the evidence, much of which was taken in Chinese through an interpreter, Mr W. S. Spence, S.M., reserved his decision until next Friday. Mr H. Rosen, prosecuting for the Commissioner of Inland Revenue, said that the charges referred to the years from 1947 to 1951, inclusive. During that time, the defendant made tax returns giving his income as between £3OO and £450 a year, except for 1950, when the income was stated to be £913. Assessments based on the defendant’s increase in assets fixed his income for the five years at about £9995, compared with his returns of £2497, said Mr Rosen. This meant that the defendant had a tax deficit of £1650, plus about £532 owed for social security payments. Mr L. F. Moller, for the defence, said Ah Cheung might have made mists kes about his income, but they were not wilful mistakes. He was completely illiterate, both in English and Chinese, and had to rely on his wife, who could read and write Chinese to a certain extent; but as she worked in the market garden all day, as well as looking after eight children, she did not have much time and could have made mistakes. “Negligence and ignorance are not enough,” said Mr Moller, “and the Crown has failed to prove that there was any intention to defraud the taxation authorities.”