FALSE INCOME TAX RETURNS

Press, Volume LXXXII, Issue 24914, 29 June 1946, Page 3

FALSE INCOME TAX RETURNS

MAXIMUM FINES IMPOSED (P.A.) AUCKLAND, June 28. The excuse that his finances had becotne mixed as a restilt of carrying on large betting transactions at the same time that he was running two night clubs was put forward by Henry Robert Kennedy, through his counsel, when he was charged with rendering false income tax returns for the years 1943 and 1944, before Mr F. H. Levien, S.M. Kennedy had formerly been a meat inspector, but near the end of 1940 or early in 1941 he had acquired premises known as the Shortland Club and had conducted two night clubs there until July, 1945, said Mr V. R. Meredith, for the prosecution. Inspectors had commenced to investigate his affairs in June, 1944, and had found that his books had not been kept satisfactorily. It had finally been established that for the income tax years 1943 and 1944 Kennedy’s assets exceeded the financial position shown by his books by about £6OOO. The assets were in the of house properties, sections, and bank deposits. With United States forces in Auckland from June, 1942, Kennedy’s business prospered, said Mr Meredith. Investigations showed that his club was the most favoured of this type. In 1943, Kennedy’s income tax return had been £604. whereas it should have been £2845, making a discrepancy of £2241. The def ficiency in tax was £922 16s ICd. In 1944, he had shown an income of £1609, but actually it had been £5620, and the tax not paid amounted to £2604 13s lid. For Kennedy, Mr G. H. Wallace said ne had been engaged to a very large extent in racing and had finally reached a position where he did not know what money was connected with his betting and what was connected with his business. It now appeared that 'he had taken too optimistic a view of his racing increments. Kennedy deserved credit for his candid attitude toward the investigators. There had been no attempt to deceive. The whole of the tax owing had now been paid. - Remarking that only one view could be taken of the offences, the Magistrate imposed the maximum fine of £lOO on each charge.