INCOME RETURNS.

Hawera Star, Volume XLVI, 6 August 1926, Page 5

INCOME RETURNS.

ALLEGED FALSE STATEMENTS

CHARGE AGAINST A COMPANY.

(BY TELEGRAPH PRESS ASSOCIATION.) WELLINGTON, Aug. 5.

Allegations of making false returns of income, against the Ocllin Timber and Hardware Company, were heard before Mr. Page, S.M. Mr. Macassey, for the Grown, said there were four informations of making wilful false returns for the years 1921-24. The departipent contended that the company, through its managing directors, Mr. Odlin and its Secretary deliberately defrauded the department of a large amount of tax. The company, had made many substantial profits, and, counsel alleged the company had hidden the_ larger part. He alleged that the buildings, motor cars, trucks, all items of capital expenditure, liacl been debited to revenue, and deducted from, profits. In the books they were, charged against revenue as charges for timber purchased. Absolutely fictitious charges, he- said!, bad been made against reveille. Reserves had been created and all had been charged upon revenue. As far as the department was concerned, they were an appropriation of net profit. It was impossible to conceive, when the balance sheets were submitted to the department- that the company did not. know they were false. The secretary was a fully. qualified acaccountant. In 1920 the return of net income was £17,768. An amended return showed "that it should have bean eat down as £29,109, showing a deficiency of £11,340. In that return it would* be seen that there was a purchase of a motor lorry at £1415, charged to timber purchases. A further sum of £2300 for the building of a garage had been charged to the timber account. Two motor cars each £4OO, were charged to timber expenses. The total deficiency over the. four years was £36,940. The tax assessed on the income return was 19,522. The tax payable on the true income, was £30,015, showing that the tax evaded for four years amounted to £10,462.