ALLEGED DEFICITS IN COMPANY INCOME-TAX RETURNS AND PAYMENT

Gisborne Herald, Volume LXXVI, Issue 23091, 2 November 1949, Page 3

ALLEGED DEFICITS IN COMPANY INCOME-TAX RETURNS AND PAYMENT

(P.A.) WELLINGTON. Nov. 1. Five charges, alleging deficiencies in income-tax returns of £10,159 between 1942 and 1946, were preferred against Rotowax Ltd., a printing and cartonmanufacturing firm of Wellington, in the Magistrate’s Court today. It was also alleged that £3458 11s Bcl in tax had been avoided.

The defendants pleaded not guilty to all charges through Mr. W. E. Leicester, the prosecution being conducted by Mr. W. 11. Cunningham. Mr. H. J. Thompson, S.M. of Nelson, is presiding at the hearing which is expected to last at least two days. Mr. 'Cunningham, in outlining the case for the prosecution, said it would be shown in evidence that there had been systematic suppression of items in the companuy's business. He said that fire salvage had realised £2168 7s sd, suppressed sales £3289 4s lOd and fictitious purchases £771, and that machinery had been paid for out of revenue and not from the company’s capital. Mr. Leicester said that while some of the figures would be accepted the headings under which they came and the construction that would be placed upon the headings were not accepted by the defendants. In respect to certain items it would be claimed that - no tax was payable, said Mr. Leicester.