GAOL SENTENCE

Hokitika Guardian, 21 May 1940, Page 6

GAOL SENTENCE

FOH SYDNEY M.L.C. ••i y . ? J _ { * i ■ (Australian Press Association). SYDNEY, May 20. The appeal of Hon. Theodore Charles Trautwein; M.L.C., dgS&ftt his sentence of a year’s imprisonment has beirii dismissed. On I ', April 16th last there was a sensation when Trautwein, who is an investor, property owner, racehorse owner, and “hotel king,” was sentenced to 12 months’ imprisonment. The Magistrate found him guilty of untrue representation and imposition on the Federal and State Taxation Departments. Trautwein, who is 72 years of age, has been iri trouble with the Taxation Department for years. The charge on which he wits sentenced arose from dpeuments involving huge amounts he had undertaken to pay the department. Mr W. R. Dovey, K. CL, prosecuting' on behalf of the Taxation' Department, declared that Trautwein was fortunate that he had lot been prosecuted for forging and uttering. Trautwein was charged with having untruly represented to the Taxation Commissioners that an agreement purporting to have been signed by\; himself, his wife, his son and daugh- \ ter, was genuine. The agreement was' actually a' forgery, and “not worth the paper in which it was written.” In 1931, said Air Dovey, the Commonwealth Commissioner of Taxation considered that Trautwein had' 'very seriously understaffed his iri-' come in is returns of 1921 to 1927' inclusive, and issued amended assess-, mentsv By” these, Trautweiri becamb’ liable to pay taxation totalling £162,-' 826. Trautwein appealed to the High Court against theise assessments. The appeal was dismissed and the assessments confirmed. Final judgment was obtained by the conmiisioner in October, 1936, for the payment of £46,510 and in September, 1937, for the balance arid additional tax amounting to £101,996. By the end of November, 1937, Trautwein had paid £46,510. In July the same year amended assessments were issued in respect of .1928-36 taxes, amounting to • £196,000 for Federal purposes. Other large sums were due for State tax. Negotiations arid discussions be-. gan in 1937, said Mr Dovev, for the settlement of Trautwein’s outstanding taxation liabilities—approximately £298,000. Trautwein Was informed by the Commissioner that- none of his* proposals to pay by instalments would he accepted unless a charge was given by Trautwein 1 and members’ of his family over certain assets held in their respective names. The assets were estimated to be worth £130,000 net. On August 4, 1938, an agreement, purporting jto be signed and witnessed, was brought to the Commonwealth Crown Solicitor’s office, by A. B. Cooper, one of Trautwein’s re--: presentatives, together with' a letter signed'hv Trautwein. Trautwein promised by agreement to pay' Iris ’taxation liabilities to June, 1938. at £28,000 a year,” said Air Dovev. “He said he would pay by instalments of £1,500 a month and: ; £IO,OOO on January of each year. He .had his family charged certain assets to secure these payments. The commissioners agreed to withhold bank- J ruptcy proceedings, and not to take other steps to enforce immediate payment! and duly executed the agree-: merit. The signatures of all but Traut-i weing himself were forgeries. They were forged by Trautwein, and the agreement was not worth the paper, on which it was written. His family 1 knew nothing about it,” ■ j Trautwein paid instalments ling £44,000. Mr Dovey said, due to, October 31, .1939. Since then he had, paid nothing, so that even if the agreement was genuine. Trautwein was in default £17,500. Last year thev •conimiisSiofuers .heard of statements made by Trautwein’s wife. Later, Triautwem’s son and daughter were examined on oath Both said they knew nothing of their father having, signed their names. To-day, the Judge, in announcing, the dismissal of his appeal against; his sentence, declared that Trautwein, had perpetrated a serious and calculated fraud.

Trautwein owns important hotel property in the city.