TAXATION FRAUD

Greymouth Evening Star, 26 May 1928, Page 7

TAXATION FRAUD

“BOOKS ALL BUNKUM” SAVINGS EXCEED INCOME (Special to “Star.”) AUCKLAND, May 25. “I suppose these books of yours are bunkum?” “Yes, of course they are.” This is the reply that Alexander Shand, a. baker, of Huntly, is alleged to have made to his questioner, an Inspector of the Income Tax Department. Shand appeared at the Police Court this morning on five charges of wilfully making false returns of income derived by him for the years ended Marell 31. 1923, to March 31. 1927. Another charge of giving false information to an income tax inspector was withdrawn by Mr V. M. Hubble, who appeared to prosecute on behalf of tb.e Commissioner of Taxes. Mr Terry appeared for Shand who pleaded not guilty. Mr Hubble said that defendant by bis returns showed that his income for 1923 was £361. £387 in 1924. £4BB in 1925, £694 in 1926, and £406 in 1927. An inspector visited him at. Huntly on November 29, last and inspected Shand’s ledger and cash book also his Savings Bank deposits. “The returns made were absurd,” said Mr Hubble, “for he was depositing as savings more than was returnable as income.” Quite apart from his current account Shand had not disclosed money he had on fixed deposit in Banks. The total difference in tax was £3OB.

Mi* Terry, who appeared for Shand, said he must admit that the returns, as rendered, were incorrect. However, they were not wilfully rendered so. At most they were negligently rendered. Shand did not wilfully perpetrate a fraud upon the Taxation Department. He was an efficient baker, and thrifty, but his knowledge of accountancy was both elementary and rudimentary. Shand in his ignorant way, thought that, he only had to make a return of his income from the business, after deducting the expenses. His wife had money in the business. She was really a partner, and the defendant did not consider he was bound to return particulars of private returns.

“Well, I am going to convict this man,” said Magistrate Hunt. “It is a case of downright impudence. Why, in one year he showed his income to be £406, whereas it. was shown to have been over £l2OO. He has been getting out of paying his taxation, and he has been drawing money out and putting it in his pocket. Shand will be fined £25 with costs on each of the five charges. That will make people be honest in their returns.”