BOOKMAKER’S INCOME

Gisborne Herald, Volume LXVI, Issue 20042, 14 September 1939, Page 6

BOOKMAKER’S INCOME

FALSE RETURNS MADE MAXIMUM FINE IMPOSED (Per Press Association.) • ■ - AUCKLAND, this day. Having failed to convince the Income .Tax Department that his income for four years was not from bookmaking but from punting on his own account, Clarence William Russell was' pirosCcfited on summons in the Police; Court to-day by the Commissioner. of Taxes on four charges of wilfully .making false returns of income derived for the years ended March 31, 1935, 1936, 1937 and 1038. Mr. R. A. Singer represented the defendant, who pleaded guilty to each charge.

• Mr. V, R. Meredith, for Ihe Commissioner, said that Russell was a well-known bookmaker in a large way. In the 1935 return, he stated he had made a loss of £B7 whereas the department’s’ investigations showed income for the year of £3710. For the year 1936: a return of £157 was made, whereas he had earned £1.673. In 1937, he showed a return of £438, whereas it should have been £sllO. EorA93B he showed a return of £320 whereas the true income was £2161. tax for which he was liable for the amounts unreturned would be over £2500.

Mr. Meredith said the authorities were quite clear that income derived from a bookmaking business was income from an illegal source, but nevertheless the same authorities were clear that it was liable to income lax duty.

Mr. Singer said that the defendant had ho means of contesting the assessments that had been made and the figures would have to be accepted. In response to the department's demand, Russell had promptly paid the amounts claimed, plus 5 per cent penalty. "These were wilful attempts to deceive,” said the Magistrate, Mr. V/. R. McKean. "Having regard to the return of income, there is little that can be said in mitigation. I would not be justified in imposing a penalty less than the maximum of each of the foilv charges. The defendant will be fined £IOO.