PUNISHMENT OF TAX EVADERS

Press, Volume XCII, Issue 27733, 10 August 1955, Page 12

PUNISHMENT OF TAX EVADERS

; Minister Discusses Penalties i • ■ — GAOL SENTENCES UNLIKELY (From Our Parliamentary Reporter) ' WELLINGTON. August 9. Alteration of the law to provide for prison sentences for income tax evasion was discussed today by the Minister of Finance (Mr J. T. Watts), the Minister of Justice (Mr J.-R. Marshall).: and ..the Commissioner of Inland Revenue (Mr F. G. Oborn). No decisions were made, and it is unlikely that gaol penalties will be introduced. In the United States the Federal laws provide for prison sentences for wilful tax defaulters, and some celebrated i criminals have been imprisoned under .ti.ose laws when the Government had jceen unr.ble to prosecute them suc;cessfui!y on criminal charges. . Prison penalties are also provided ! -or :n Australia, but no record of imprisonments there is known. In New Zealand, as the law stands nday, persons who withhold the payiment of wages tax to the Inland i Revenue Department after withdrawI fax rom wages or salaries are uable to imprisonment. The law has I beer operative for 17 years, hut only been sent to gaol. :. resides being prosecuted and fined, income .ax evaders : are liable to be charged treble the amount of taxation by the Commissioner of Inland ! he . names defaulters ar e published in the Gazette. . T*? 6 opinion at high levels appears to be that if gaol penalties were introduced, the Inland Revenue Department would meet with almost ini hrmountable obstacles in making inas d f fai ’ J< ers would be entitled t > seek protection from incriminating . by stat " m ents and production of books.

y *® r ?- x d > scr ”Pancies revealed ml estigation of taxpayers' affairs A^a,. lnSp^c . ,ors totalled £2.088.315. Additional tax assessed was £1.574.219. he additional social security charge assessed being £239.804. B