BIG TAX EVADERS

Chronicle (Levin), 16 January 1947, Page 4

BIG TAX EVADERS

500 CAUGHT IN SYDNEY NET Investigation by taxation offieiars last year has revealed that an extraordinary number of people in Sydney have made huge profits firom a wide assortment of rackets, states the Sydney Sun. In a largescale check-up, investigators have found that more than 500 people haye understated their annual incomes by amounts ranging from £1000 to £10;000. Big city blackmarketeers have earned up to £50,000 • Which they have not revealed dri returns, and several large companies have understated ncomes by £100,000. As mosf of the understated l/idividual incomes are probably from illegal sources;- many of the racketeers will be prosecuted and probably fined the . maximum of £500 for tax evasion. However, they will suffer most when an additional penalty .of double the amount evaded is imposed by taxation offleials. This fine can be reduced only by the authority of the Commissioner. The taxation department started a record "blitz" on tax evaders last year, and only a fraetion of the suspected 100,000 ineome returns has been examined so far. Senior investigators believe that all suspeeted "snide" incomes have been earned by biackmarketing or somt other illegal source. Taxation officials are perturbed by the number of rackets flourishr ing in Sydney, and believe that with more investigators, 2000 people would be found - guilty of underestimating their incomes by amounts ranging from £1000 to £20,000. In 1944-45, the income omitted from New South Wales returns was more than £2,000,000, and penalties imposed amounted to £300,000. Higher figures are expected as a result of this year's investigations. Investigators believe that the most profitable blaekmarket is in liquor and cigarettes. Next come blackmarkets in : — Clothing and textiles, boarding-house and flat rents, car saies and foodstuffs. There are hundreds of other* flofirishing blackmarkets from which petty blackmarketeers are earning easy money. Many ott'enders are "put in" to the taxation department by their neighbours, jealous of the way the blackmarketeer throws his easily- . earned money around. Investigators have found thousands of pounds m ten-pound notes, concealed in safe deposit boxes, in tins under the ground, and even under the carpet. With six years' experience in ferreting-out methods used by blackmarketeers to evade taxation investigators now consider that f ew tax-evaders can escape. Thousands of people are "on the list" to have their earnings checked, but shortage of investigators has delayed operatiQns, . Eventually the/ earnings of every suspected person will be thoroughly checked.