TAILORS FINED

Greymouth Evening Star, 21 June 1926, Page 8

TAILORS FINED

INCOME TAX EVASION. (Per Press Association.) AUCKLAND, June 19. The question of whether a fine inflicted by the Court would concern the Income Tax Department in the fixation of a penal assessment, was raised by Mr. E. C. Cutten, S.M., when Percy Flower Carter and Chairles Ernest Gibberd, tailors, formerly in partnership at Tauranga, were charged with making false returns of income for 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 Ronal Richardson, Inspector for the Department, said misstatements in the returns made by the defendants had resulted in Gibberd being assessed for £7/5/10, whereas the amount should have been £73/2/4, and Carter for £62/11/-, whereas the amount should have been £l6l/5/9. Replying to Mr. Gould for the defendants, the Inspector said the correct returns had been given in instances where a mis-statement would have been simple. The Magistrate asked: “What will be the attitude of the Department?” Mr. Hubble replied that the Commissioner of Taxes acted independently, but it was possible, if a heavy penalty were inflicted, that his Department would fix a heavy assessment. “I find myself compelled to take a serious view of the cases in respect to both defendants,” the Magistrate said, in entering a conviction against each defendant on the charge of wilfully. making false return. He said Carter had made false returns for an obvious motive. Although it had been stated that Gibberd left all the accounting work to Carter, it was impossible when both were doing well, that he should imagine he could get away with an income tax of £7/15/-. The maximum penalty was £lOO, but he had known a worse case. He would fine each defendant £2O with costs 7/-, and solicitors’ fee £3/3/-.'