INCOME TAX EVASION.

Otago Witness, Issue 3773, 6 July 1926, Page 18

INCOME TAX EVASION.

FENAL ASSESSMENT UPHELD. AUCKLAND, June 30. An appeal from the decision of the magistrate in upholding the penal assessment of income tax imposed by the Commissioner of Taxes on Frank Jecentho, a fanner, of Peria, waa heard in the Supreme Court before Mr Justice Stringer. Counsel for appellant said that in 1920 appellant furnished an income tax return Wtucn rendered him liable to taxation amounting to £9 16s 6d. In December, 1923 an inspector of the department proceeded to Kaitaia and investigated the appellant’s position, with the result that an amended assessment was mode under section 62 of the Land and Income Tax Act, 1923. Appellant was charged tax amounting to £1571 2s. Objection was taken to the assessment, and a case was stated for hearing by a magistrate at Kaitaia. After hearing counsel for appellant his Honor said there was no necessity for the Crown Solicitor to reply. He was satisfied that the decision of the magietrate was correct, and the appeal would be dismissed The fact that the case had been stated under the Act of ' 1923 instead of under the Act of 1926 was immaterial. The clauses relating to penal proceedings were identical in both Acts. There was ample proof that appellant had committed an act that rendered him liable to the penal tax. The man nay havo been mora or less illiterate, but there was evidence that ha was a vary ■hrswd business man. Ha had startad in a ■mall way, and in 1990 his bank returns showed that ha had capital assets totalling 488.190. His own return showed hie profits to be 4662, rendering him liable to a tax of 49 16s 6d. The profits should have been shown to be 48214. He was satisfied that appellant had wilfully and deliberately evaded

the just payment imposed on* him, and that the penal tax should be imposed. Costs (£lO 10s) were allowed respondent.