INCOME TAX RETURNS

Otago Daily Times, Issue 18802, 3 March 1923, Page 5

INCOME TAX RETURNS

FALSE DECLARATIONS. £IOO FINE IMPOSED. (Pan United Press Association.) WKIHANGTON, March 2. A reserved decision was given h” Mr E. Pago, S.M., in (ho Magistrate’s Court in (ho ease of (he Commissioner of Taxes v. Louchars anil (told. Lenehars, general manager and partner of (ho firm, was charged with negligently making a false return of v (ho income earned by Messrs Veitch and Allan for the year ended July 31, 1919, and also with respect to the year ended July 31, 1920. Gold was charged with aiding Lenehars. “It is clear from the evidence,” says the judgment, “(hat the returns of income are incorrect for the year 1919. Drawings of the partners amounting to £llsO have been deducted from the income, and it is shown that wages paid and legal expenses amounting to £159 6s incurred in conncetihn with the partnership arc also deducted. This is capital expenditure. £3OO lias been deducted for depreciation of motor cars. The Act says that such deductions may be made by the Commissioner, if ho thinks proper. Other improper deductions were made in regard to the purchase of cash registers, the reserve for purchase of lease, bad debts, and other transactions. Leuchars had made a declaration that the returns were correct in every par ticular. The inaccuracies wore all glaring ones, and could have boon discovered by the aid of books with slightest inquirjn Leuchars negligently made returns for two years, and must be convicted. Gold must have known that the deductions made by him in the returns were unauthorised by the Act. Gold had aided in the commission of the offence, and must be convicted.” Each defendant was fined £IOO.