FALSE TAX RETURNS

Press, Volume XCVIII, Issue 28825, 20 February 1959, Page 12

FALSE TAX RETURNS

“£56,000 Hidden Away” ' • Wee ZMnino •*▼•*» AUCKLAND, February 19. George Ivor Death, a Mataxohe farmer who now lives in Auckland, waa fined £lOOO by Mr W. S. Spence, S.M„ when he pleaded, guilty in the Auckland ■'Magistrate’s Court today to 10 informations of wilfully, furnishing false returns of income. The tax deficiency claimed by the Department of Inland Revenue was £31,779. For the department, Mr H. Rosen said that this was the greatest defalcation that had come before the Court for many years. Over the period 1948 to 1957 Death claimed that his total income was £24,074, said Mr Rosen. On this assessment he was liable to pay £6496 income tax. However, the department inquired more fully into his financial affairs, and the investigations revealed that, among other things; stock sales, amounting to £30,000 and wool sales from which he had received £ 14,000 had been suppressed. The defendant’s income over this period was then reassessed by the department at £80,898, and the income tax assessment was accordingly increased to £38,276 leaving a tax deficiency of £31.779. There was alsoa deficiency of £4931 in social security tax. Mr Rosen said that when Death was interviewed by an income tax inspector, he admitted knowing that he was “a bit out" in his income assessment, but said he did not realise it was "as much as it turned out to be.” On his own admission, said Mr Rosen, the defendant had compiled his returns to the department by sitting down and doing a lot of guesswork. The deficiency was so large as to swamp' any explanation. It was deliberate evasion. The Magistrate said that over 10 years. Death had hidden away £56,000 of income. For this tremendous discrepancy the maximum penalty of £lOO on each of the 10 informations was called for.