NO RETURN OF INCOME FOR FOUR YEARS

Dominion, Volume 18, Issue 151, 20 March 1924, Page 6

NO RETURN OF INCOME FOR FOUR YEARS

NEGLECTFUL ACCOUNTANT HEAVILY FINED SEVERE COMMENTS BY BENCH (BY TELEGRAPH.—PRESS ASSOCIATION.) Christchurch, March 19. Wilfred S. Godfrey, an accountant, pleaded guilty in the Magistrate's Court to-day to four charges of failing to furnish income tax returns for the years 1920, 1921, 1922, and 1923. As trustee in the estate of Colthurst Palairet ho pleaded guilty to four similar charges covering the same period in respect of the estate. Mr. A. T. Donnelly represented the Commissioner of Taxes, and Mr. O. T. J. Alpers appeared on behalf of defendant. Mr. Donnelly said that defendant was a public accountant and had made no returns to the Department since 1915. Although returns had not been made, on occasions the Commissioner had made default assessments against defendant, and these had been paid. There was no suggestion that defendant had intended to defraud the Department. Defendant had been interviewed many times in reference to the returns, and he had promised 10 make them, but every time he had failed to do so. The case appeared to be one of very gross negligence and no explanation of this negligence had been made to the Department. The real object of the present proceedings was to force returns out of defendant. Mr. Alpers said that Godfrey did not wish him to make any excuses for his conduct, because he realised it was inexcusable. The returns required by the Department had now been made and wore delivered in Wellington last Friday. Defendant had not tried to defraud the Department, and had even overpaid his tax in some cases when default assessments had been made against him. The Magistrate: Has he been « muddler ?

Mr. Alpers: No, Your Worship. He has been a busy man and has neglected his affairs for those of other people. He had not worried much about hi» personal tax, and the estate, too, was something of a family affair. The Magistrate said there were strange circumstances about the case. For eight years no returns were made and on several occasions default assessments had been paid. In the years 1922-23, the Commissioner of Taxes seemed to have become tired and defendant paid nothing and said nothing Defendant was an accountant, and the nature of his business was to keep accounts in order and to send in prompt returns. If he were unable to do this for himself he should have been abie to get a member of his staff to do it for him. He thought defendant had intended to defraud the Department, because he had made no returns. Remaining silent was,, of course; a less active form of defrauding than that of the making of false returns, but still it was a grave offence. , Godfrey was fined £5 and costs on each charge, and was ordered to pay solicitor’s fees (£3 35.) on each charge. The fines and costs total £6B.