Four Charges Of False Returns Of Income

Press, Volume CI, Issue 29931, 19 September 1962, Page 7

Four Charges Of False Returns Of Income

George David Dudley Hungerford, a civil servant and land-owner, of Christchurch (Mr R. W. Edgley), faced four charges in the Magistrate's Court yesterday of wilfully filing false returns of income. The charges, involving an alleged understatement of income of £2357, were heard before Mr R. M. Grant, S.M.. who reserved his decision. They related to the years 1954 to 1957.

Mr C. M. Roper, for the Inland Revenue Department, said there was no great dispute about the facts. Evidence would be given that Hungerford owned five properties in 1954 and six in 1955

It was alleged that the deficiency was made up largely of advances from Mrs A. M E J. Clifford. Hungerford assigned the rents of various properties to Mrs Clifford for a period to end in 1959 when the debt would be extinguished A question that would have to be considered would be whether Hungerford should have considered these rents as taxable income, Mr Roper said. The abatements made up £1435 of the deficiency, leaving a balance of £922.

It had been alleged that the balance of the deficiency came about by the Inland Revenue Department overestimating living expenses The department alleged in turn that Hungerford had understated rents for the years 1954 to 1956. Two of Hungerford’s properties could be disregarded, as rents produced were paid to Mrs Clifford throughout the period of the investigation.

In effect, he had three properties and later four from which he was receiving rents. Mr Roper said. As at March 31. 1954. he had three properties let but was receiving returns from only two From 1955 to 1958 he had four available for letting. The re'urn of gross income from rents for the year end-

ed March 31, 1954, was shown as £590, for 1955 £ 650, for 1956 £1389. for 1957 £2193, and for 1958 £2747. Mr Roper said that Hungerford had no current bank account and no accurate rent records for the years other than 1957 and 1958. Mr Edgley said that Hungerford had no idea what figure Mrs Clifford had received in repayment of the £4025 advanced. In evidence Hungerford said he estimated that Mrs Clifford would have made no more than £lOOO on. the deal. Hungerford gave evidence of inexpensive living while he built up his property assets. He denied knowing that the rents paid to Mrs Clifford were taxable.