Tax evasion on car alleged

Press, 14 March 1987, Page 4

Tax evasion on car alleged

Customs and sales tax evasion amounting to $30,446, over the importation last year of a 1983 Porsche car purchased in England, was alleged in the District Court yesterday against Susan Michelle Purdie, aged 26, registered nurse. After hearing prosecution evidence, and submissions by defence counsel that there was no case to answer to the two charges, Judge Erber reserved his decision on the question of whether a case has been made out.

The defendant denied a charge that on July 23 last year, with intent to defraud customs revenue, she completed a questionnaire and declaration in which she purported to be the owner of the 1983 Porsche car, thereby enabling the true owner, Euan Cameron Purdie, to evade the payment of $14,879 which was part of the duty payable on the car.

She also denied a similar charge relating to the alleged evasion of $15,567 being part of the sales tax on the car.

The Customs Act provides for forfeiture of the car if a conviction is entered.

Mr D. J. L. Saunders prosecuted for the Customs Department and Messrs C. B. Atkinson and C. D. Eason represented Purdie. Prosecution evidence occupied most of the allday hearing. Evidence was that the car was purchased for £14,250 and that Euan Purdie advanced his brother, Alan Purdie, and sister-in-law (the defend ant) £15,000 for the purchase, and other expenses. Mr Purdie said the funds were provided

“within the family situation” and at no time did he regard the car as his. Mr Atkinson, submitted that there was no case to answer. The defendant’s contradictory statements had arisen from confusion over the length of time she intended keeping the car, upon its importation. He said the department had appeared to have a “hang-over from the old regime” in treating Euan Purdie as the purchaser; whereas the car was registered in the defendant’s

name, insured in her and her husband’s name, shipping documents were in her name, and she had applied to import the car. At all times she was in law the legal owner, Mr Atkinson submitted. Mr Saunders submitted in reply that the department was not under a misconception. He referred to the definitions of "owner” in the Customs Act and said Euan Purdie clearly had a financial and beneficial interest in the car.