INCOME UNDERSTATED

Gisborne Herald, Volume LXVI, Issue 20112, 5 December 1939, Page 13

INCOME UNDERSTATED

TE ARAROA LICENSEE

CHARGES INVOLVE £3243

FINES AMOUNT TO £lO2

Under-statements of income involving £3243 7s 5d over a period of five years formed the basis of five charges heard yesterday in the Magistrate's Court by Mr. A. Coleman, S.M., and the defendant, Herbert Askew, hotelkeeper, To Araroa, was fined £lO2 and ordered to pay costs amounting to £4 12s.

On a charge of wilfully making a false return under the Land and Income Tax Act on April 24, 1935, Askew was fined £5 and costs, for a similar charge on April 20, 1930, he was fined £7, a charge dated May 10, 1937, £4O, a charge dated May 20. .1938, £3O, and on the final charge, dated May 30, 1939, £2O. Costs amounting to 10s in each case were ordered for payment, as well as* £2 2s solicitor’s fee.

The prosecution was conducted for tiie Commissioner of Taxes by Mr. F. Wrcy Noian, and Mr. M. R. Maude represented the defendant and pleaded guilty to all five charges.

Serious Discrepancies

Mr. Nolan said. an examination of Askew’s books by the departmental officer had disclosed a systematic suppression of receipts for a lengthy period. Money had been put away under his and his wife’s names without being recorded. There appeared to have been a manipulation of the books as there were serious discrepancies in the amounts returned and the amounts shown in the books.

In 1935 Askew’s income was understated to an extent of £lB9 16's sd, in 1936 by £223 13s 3d, in 1937 by £1216 10s Id. in 1938 by £899 12s 4d, and in 1939 by £613 15s 4d, making a total under-statement of finance over the past five years of £3243 7s sd. That represented an under-payment of tax amounting to £Bl2 Is, which had since been paid by the defendant.

The view of the department was that everything pointed to the offences being deliberate, and Mr. Nolan said the matter was regarded in a serious light.

Helped Poor of District

For the defendant, Mr. Maude said

he was an hotelkeeper in Te Araroa, and held the reputation of being one of the most respected licensees on the Coast. He actually acted in the nature of a banker for some of the people in | Te Araroa, and helped the poor resi- j dents of the district. Objection was taken to the statement that his income account differed from the profit and loss account. Mr. Maude said the profit, and loss account was sent to the department and the < items in the income account would be * seen to be different. Reference to manipulation of the books would be . no concern of Askew's, because he entered up his day's takings in a cash i book and then handed that book to an J accountant. It was extraordinary that some of the deposits were mentioned In his books, and it would be forcing the position to think that the offences were .committed deliberately, continued Mr. Maude. There was no bank in Te Araroa, and even the defendant’s accountant was stationed in Ruatoria. It was awkward for such a busy man to deal with the books and that was why they were lelt to an accountant. Rather than wilful suppression, it was possibly a case of negligence.