TOO MODEST

Wanganui Chronicle, Volume LXXXIII, Issue 19828, 30 April 1927, Page 7

TOO MODEST

UNDERSTATES HIS INCOME CHEMIST HEAVILY FINED [Per Press Association.] WELLINGTON, April 29. Having understated his income by £9711 since 1917 thereby evading the payment of income tax to the extent of £946 Herbert Hcpworth chemist of Palmerston North was fined a total of £SUO by Mr E. Page S.M., to-day. Mr Turihopc, for the Department saiil; that defendant had returned less than one-third of his income and the tax paid was about one-sixth of what it should have been. Mr Tuhhope said that defendant bought the Palmerston business in 1917 for £lO,OOO to be paid, in instalments Up to December 1926 apparently he iound the strain on his resources too great and to meet his commitments adopted the course followed. He probably felt that his needs were greater than the State’s. He had returned a total income of £4626 instead of £14,237. The actual tax paid was £173. It should have been £lll9. The deficiency between the true income and the income as returned was made up as follows: Sales understated or omitted from cash book and receipts £3948; loan obtained in 1917 from a Wellington firm, paid off and deducted from income £1370; £2552 for rent which was not paid and £lB4l which could not be definitely located but was presumably represented in rents received. Defendant’s assets when he commenced totalled £3113 whereas in 1926 they amounted to £14,577. Mr G. C. Paterson for defendant said that he had not defrauded the Department for greed and the discrepancies were quite apparent from an examination of the books. It had been his intention to place his cards before the Commissioner of Taxes and take his grueL Mr Page said he would have to impose a substantial penalty. He was fined £lOO on each of five charges and a month was given' to find the money.