Tax-evasion fine up to $25,000

Press, 13 November 1985, Page 6

Tax-evasion fine up to $25,000

PA Wellington Penalties in the Inland Revenue Department Act, 1974, the Land Tax Act, 1976, and the Estate and Gift Duties Act, 1968, will be increased by the Inland Revenue Offences Bill, says the Minister of Finance, Mr Douglas.

Introducing the bill to Parliament last evening, Mr Douglas said persons convicted of failure to furnish information to the Commissioner of Inland Revenue could be subject to a $2OOO fine for a first offence, plus $5O for each day of default. Mr Douglas said persons with previous income tax convictions under the three pieces of legislation could be fined up to $6OOO, plus $l5O for each day of default. “The bill also introduces a new offence into the Inland Revenue Department Act, 1974, and the Land Tax Act, 1976,” Mr Douglas said. “The new offence consists

of failure to comply by any officer or employee of a company or other corporate body who is responsible on behalf of that body for furnishing information to the Commissioner of Inland Revenue,” Mr Douglas said. The new legislation is expected to come into force on April 1, 1986. Under the Income Tax Amendment Bill (No. 5), introduced to Parliament last week, a second offence for filing a false income tax return could result in a $25,000 fine. This bill increased first offence maximum fines from $2OOO to $15,000 and subsequent fines to a maximum of $25,000. The Opposition’s finance spokesman, Mr Bill Birch, said last evening that he supported an increase in penalties. The bill was referred to the Finance and Expenditure Select Committee.