FINED £125

Evening Post, Volume CV, Issue 123, 26 May 1928, Page 10

FINED £125

WRONG TAX RETURNS CASE AGAINST A BAKEit (By Telegraph.) v (Special to "The Evening Post") AUCKLAND, This Day.' Fines totalling £125 were imposed on Alexander Shand, a baker, at Huntly, who was charged in the Magistrate's Court with wilfully making false returns of income derived by him fvom March, 1923, to March, 1927. Pleas of not guilty were entered on all charges. Holding Shand guilty and imposing fines of £25 on each of five counts, Mr. 1\ K. Hunt, S.M., said: "I am satisfied that defendant knew perfectly well what he was doing. He was banking plenty of money and returning -false particulars to hoodwink the Department. If that is not wilful 1 do not know what is. This should make people like this return honest statements." The minimum fine for one offence is £2, and the maximum £100. The figures put forward by Mr. Hubble for tho Income Tax Department showed divergencies in the return made by Shand and that assessed after investigation by an inspector of the Department. Tho following were the returns made by Shand, the assessed income being given in parentheses: 1!>23, £3GI (£1250); 192-1, £387 (£1200); 1925, £48S (£1007); 1920, £694 (£1350); 1927, £506 (£1100). The tax paid by Shand in 1923 was £1 3s 2d; in 1924, 18s 3d; in 1925,£4 18s 9d; in 1926, £2 4s; and in 1927, 10s lid. The tax pay- [ able according to the inspector's return was £70 3s 6d, £58 12s Id, £44 0s 7d, £65 18s 3d, and £87 19s 3d. The total deficiency in tax was £307 19s -7d. Giving evidence, Shand said that in 1922 his wife had .£IOOO from her mother's estate and other capital. If he wanted financial assistance his wife gave it. Besides this, she was "the business one" and'ran the business. "I understand now that the books I kept were all 'wrong, but they were in such a way that I know what they meant." (Laughter.' Cross-examined by Mr. Hubble, Shand admitted that some of the money paid into the Post Office Savings Bank account came out of the business. Ho knew that money was lent on mortgage and that other sums were on fixed deposit. "Did it not dawn on you that; you were gradually accumulating wealth— that you were getting rich?" asked counsel. . . Shand answered that ho had not thought of it. Mr. Hubble: "Did it not occur to you that you wore getting out remarkably light when your tax was only 10s ami £1 and £41" Mr. Terry: "Ho did not know much about income tax." Mr. Hubble: "I think he knew a lot about it." Mr. Terry": "Ho docs now." "Did you know your books were all wrong?" asked Mr. Hubble. Witness: "I thought they were right." ■Mr. Terry: "He thought he had to return- income after the business had been run. Whether tho explanation is good, bad, or indifferent, it is his statement, and you must accept it." "I ani asking your Worship to beliove that Shand put in his return, no doubt haphazardly, as he thought correctly," said Mr. Terry. "Ho is a thrifty, industrious baker, but his knowledge of accountancy is elementary and poor. No conscious effort was made by him to defraud the Department. The business was run as a partnership between Shand and his wife. All he/ moneys intermingled with his. Even although on figures the returns as rendered are incorrect, I ask you to believe that he did not do it wilfully." The Magistrate imposed a fine of £25 on each of the five charges.