INCOME TAX EVASION

Otago Daily Times, Issue 20354, 10 March 1928, Page 11

INCOME TAX EVASION

THE MELBOURNE CASE. PROCEEDINGS ADJOURNED. {Press 'Association —By Telegraph—Copyright.) MELBOURNE. March 9. Mr Justice Starke, in the High Court, refused to make an order in the Abraham income tax case, and the proceedings were adjourned sine die. Mr Justic Starke’s judgment said that the avowed purpose of the proceedings was to use the judgment of the court for the purpose of executing and enforcing an arrangement with the defendants, and so long as that arrangement and purpose subsisted ho was not prepared to give any judgment lending the aid of tile court to any such purpose. The action was commenced in the High Court in respect to the shortage of income tax paid by three brothers named Abrahams. The Taxation Commissioner claimed that one brother, Alfred, in a return in respect of income for the year ended June 30, 1927, understated the amount of his income, which he alleged to be £3214, whereas it was £35,358. In 1925 he stated that his income was £3506, whereas it was £38,054. The commissioner claimed that the evasions of tax amounted to £10,221 in 1924, £9543 in 1925, and in 1926 it was £7792. He claimed the penalty of £SOO allowed by law, and treble the amount in each case, which amounted to £83,168. The brother Louis owed £76,651. Mr Justice Starke remarked that the penalties on the pleadings would amount to £265,000, to which had to be added £IOO,OOO, which th e three of them would have to pay in tax. One of the brothers, Emannei, had stolen out of the country, and could not be traced. The defendants admitted the truth of the commissioner’s case, and had paid a sum of £500,000 in satisfaction. Mr Justice Starke expressed surprise that the Crown had compromised with th e taxpayers. He considered that the pleadings and the defence alike disclosed a conspiracy, and that there should have been a prosecution under the Crimes Act.