EVADING INCOME TAX

Dominion, Volume 19, Issue 237, 21 June 1926, Page 6

EVADING INCOME TAX

MAKING FALSE RETURNS TWO TAILORS FINED By Telegraph.—Press association. Auckland, June 19. The question whether the flue inflicted Uy the Court would concern the Income Tax Department in the fixation of the penal assessment was raised by Mr. E. C. Cutten, S.M., when Percy Flower Carter, arid Charles Ernest Gibberd, tailors,, formerly in partnership at Tauranga, were charged to-day with making false returns of income tor the year ended February 28, 1921. Mr. V. N. Hubble, who appeared for the Commissioner of Taxes, said the information was laid on the very last day on which it could have been laid. Claude Ronald Richardson, Inspector for the Department, said the misstatements in the returns made by the defendants had resulted in Gibberd being assessed for £7 ss. 10d., whereas the amount should have been £73 2s. 4d., and Carter for £62 11s., whereas the amount should have been £l6l ss. 9d.

Replying to Mr. Gould for the defendants, the inspector said correct returns had been given in insances where a misstatement would have been simple. “If the Court takes a serious view of the case,” asked the Magistrate, “what will be the attitude of the Department?” 1

Mr. Hubble . replied that the Commissioner of Taxes acted independently' but it was possible that if a heavy penalty were inflicted the Department would fix a heavy assessment. “I find myself compelled to take a serious view of the cases in respect of both defendants,” the Magistrate said in entering a conviction against each defendant on thd charge of wilfully making a false return He said Carter had made false returns for obvious motives, and although it had been stated that Gibberd left all the accounting work to Carter, it was impossible, when both' were doing so well, he should imagine he could get way with an income tax of £7 15s. The maximum penalty was £lOO, but. he had known worse cases. He would fine each defendant £2O, with costs, 75., and solicitor’s fee, £3 3s.