FALSE HETURNS

Southland Times, Issue 20172, 7 May 1927, Page 8

FALSE HETURNS

INCOME TAX EVADED. MAXIMUM PENALTY IMPOSED. A WELLINGTON PROSECUTION. (Per United Press Association.) Wellington, May 6. What Mr Tudhope, for the Crown, said was the most glaring case he had dealt with came before Mr Riddell, S.M., when Edward Reuben Benjamin Holben, Palmerston North, admitted having unlawfully made false income tax returns for five years ended March 31, 1926. The income returned was £3658 instead of £23,638, and the tax paid £33, when it should have been £2755. Only five informations were laid because of statutory limitation. Trading as Holben and Kirk, said Mr Tudhope, defendant was in a large way of business as an importer and manufacturer and dairy engineer. He bought out his partner, Mr Kirk, in 1919, and from that time seemed deliberately to have set out to evade paying the tax. Counsel wished it to be distinctly understood that Mr Kirk was in no way connected with the defalcations. He mentioned that investigation further back showed that in the two years preceding 1922, defendant’s income was understated by about £2OOO. Since 1922 defendant had deducted £5900 from his income by attributing large sums to the payment of fictitious workmen. Mr Cooper, for the defendant, said that he had placed large sums in his reserve account to meet anticipated liabilities and regarded this as a trust fund. Mr Riddell: There must have been deliberate evasion. He imposed the maximum penalty of £lOO each on the five charges. Costs amounting to £lO 10/- were allowed.