I.R.D. criticised in drug case

Press, 4 October 1982, Page 41

I.R.D. criticised in drug case

PA Auckland The convicted drug importer. Peter ' Schneflinger. has been assessed as liable tc pay $2 million tax. it has been shown in the High Court in Auckland. But the Inland Revenue Department has come in for strong criticism by the High Court judge who jailed Schnellinger for 7'z years. Mr Judge Thorp said that in his view the attitude of the department was "unhelpful and discourteous."

"If the prevention of profititing from this sort of business is to be effectively controlled, it needs to be the combined intelligence of both the courts and the department — not the sole consideration of one of the two." said his Honour.

He heard that the department had already seized Schnellinger's investments with an Auckland law firm, he said.

Appearing in court with Schnellinger. an Austrianborn artist, were three other men. all of whom had.been convicted of importing cannabis resin and conspiring to import the drug into New Zealand.

Schnellinger. who is already serving a six-year jail term on other drug charges, was ordered to serve the 7'-z year sentence concurrently. Ronald Glenn Dalton, aged

29. a farmer, of Puhoi. and Christopher Willoughby Allum. aged 33. a company director, of Ohakune. were both sentenced to four years jail. Mostyn Guy Hooper, aged 30. a salesman. ,of Meadowbank, was sentenced to one year's jail.

Schnellinger and Hooper had both been found guilty bv a jury. Dalton and Allum had pleaded guilty to the charges. The offences involved the importation from Katmandu of cannabis resin with a street value of SlOO.OOO. The Court heard that the drug was concealed in oxygen cylinders imported into New Zealand in July last vear.

Before the men were sentenced. Mr Michael Ruffin, for the Crown, called an Auckland lawyer to give evidence. The lawyer. George William Boyd, told the Court he was a principal, in the firm of P. J. Doole and Partners. He said Sehnellinger was a client of the firm and. with Susanne Honetz. had funds invested in the firm's trust account.

Mr Boyd produced a ledger sheet which showed that the couple had $81,351 to their credit. Mr Boyd said he had been served with a notice under section 400 of the Income Tax Act requiring that the

capital and interest received should be paid to the Inland Revenue Department.

His Honour asked Mr Ruffin whether the Commissioner of Inland Revenue had revealed the basis of the $2 million tax claim against Schnellinger. Mr Ruffin replied that it appeared to be a default assessment.

His Honour suggested that the District Commissioner of the Inland Revenue Department should release sufficient funds to enable Schnellinger and his de facto wife. Miss Honetz. to pay an accountant to prepare their tax returns.

Through their counsel. Mr Barry Hart, the couple agreed to co-operate with the authorities in revealing their financial position, and bank accounts in New Zealand and Austria.'

Miss Honetz appeared in the High Court with Schnellinger because she had failed to pay a fine of $25,000 imposed on her last month after a conviction for possessing cannabis resin.

His Honour said he had imposed the fine earlier because he believed the money was available. He was reluctant to jail her because she had a young child to care for.

He ordered a report from the registrar of the High Court on the ability of Miss Honetz to meet the fine.