INCOME TAX

Southland Times, Issue 20496, 26 May 1928, Page 8

INCOME TAX

FALSE RETURNS BAKER FINED ON FIVE CHARGES PLEA OF IGNORANCE - Ai-.S (Per United Press Association.) Auckland, May 25. In the Police Court a baker, Alexander Shand, who is in business at Huntly, appeared to answer five charges that he wilfully made false returns of income for the years 1923 to 1927. He pleaded not guilty. Mr Hubble, Crown Prosecutor, stated that it would be shown that defendant was depositing as savings more than was returnable as his taxable income. The deficiency in the amount of the tax paid was £307 19/7. An inspector suggested to defendant that his books were all bunkum. Defendant replied: suppose they are.” Mr Terry, who appeared for Shand, said that he must admit that the returns as rendered were incorrect. However, they were not wilfully rendered, at most they were negligently rendered. Shand did not wilfully perpetrate fraud upon the Taxation Department. He was an efficient baker and thrifty, but his knowledge of accountancy was both elementary and rudimentary. Shand, in his ignorant way, thought he only had to make a return of his income from business after deducting expenses. His wife had money in the business. She was really a partner and defendant did not consider he was bound to render particulars of private returns. ‘‘Well, I am going to convict this man,” said the Magistrate, Mr Hunt. “It is a case of downright impudence. Why, in one year he showed his income to be £4OO, whereas it was shown to have been over £1,200. He has been getting out of paying his taxation and he has been drawing money out and putting it in his pocket. Shand will be fined £25 and costs on each of the five charges. That will make people be honest in their returns.”