Tax charges defended

Press, 24 March 1984, Page 4

Tax charges defended

Judge Paterson yesterday reserved his decision after a District Court hearing of seven charges of failing to account for P.A.Y.E. tax deductions, against a Christchurch real estate business and its governing director. The Inland Revenue Dejartment (Mr A. M. Mclnosh) alleged that between October, 1982, and April, 1983, DeVere and Clothier Real Estate, Ltd, and thereby Bernard Nicholas DeVere, failed to account for deductions totalling $11,221.44. The charges were denied. Counsel for the defendants, Miss K. G. Feltham, said confusion arose when two cheques written to

cover the September, 1982, tax deductions were endorsed “present again” by the bank.

Mr DeVere told the court that each time this happened the bank manager was away, but there were sufficient funds in his account to cover the cheques.

When he discovered what had happened he paid the department with a bank cheque and assured that the two earlier cheques would be presented. If this had been done all his tax-deduc-tion payments would have been up to date, but this was never done.

The problem was compounded whan he did not realise that future payments

he made were paid against the total arrears, and not just the monthly payment due.

Further, when he investiaged his company’s tax-de-duction payments, he realised that tax was being paid on commission in the month it was confirmed, but not necessarily in the month it was paid. He said all the arrears had now been paid. Miss Feltham submitted that there was no evidence of the necessary guilty intent, and the whole problem was caused by elements beyond Mr DeVere’s control. The Judge will give his decision on Monday.