Accountant’s Fraud.

Hokitika Guardian, 10 March 1922, Page 3

Accountant’s Fraud.

HEAVY PENALTIES. | LONDON, Eeh. 17. i ].t was in the “Sorcerer” that Gilbert pooh-poohed the idea oi considering j income tax evasion a serious crime. 'Hiere are a few just row regretting ! that they took the Giluertiaii view, lor ! the Inland Revenue has succeeded in i making the judge fine one man LYjOO, | Pattulln, and two others, Eordc and j Wilkie, lesser amounts, the oflonders to remain in prison until the money is i paid, for defrauding the Exchequer. The case is worth noting on its own account, but interest is added to it since Sir Westby Percival, iormeiK , Agent-General ol New Zealand and Tasmania, and Mr Wootton, K.C., both spoke io Eordc’s high eharaetei. A i letter was also read from Lord RosOv fiery, who was stated to be too ill t 0 attend. In this Lord Rosebery ! said: ; “I have long known Mr Eorde as a | neighbour and friend, and 1 am ooiriij d<yh lie is incapable of anything mean !or dishonourable. I think I can tlso teslifv that he lias earned the confidence and esteem of the people of Epsom.” The men in the case were Limes ! Durie Pattullo (50) and Desmond Eorde (88), members of a well-known firm of ‘ city accountants, charged with cou- ' spiring to make false income tax returns, and James Alexander A ilkie (55), a clerk in tliSe employ of Pattullo, all of whom pleaded guilty. , Mr Justice Coleridge, in passing sentence, said the defendants wore not in the position of ordinary people. Pattullo and Fordo were members of an

honourable profession. It was largely beacusc of their position and reputation that their accounts were accepted as correct by the revenue authorities. “It is a serious offence,” lie continued. “It is upon the correct return of income that the whole financial stability of the country depends, and if it is thought for a moment that to defraud the revenue is a venial offence, I do--sire, as publicly as I can, to correct any such idea. “I have bad to consider very carefully whether I should imprison all or any of you, but 1 have come to the conclusion that leniency may not perhaps ho misplaced. 1 desire the revenue should not suffer from your frauds. Certain compensation lias already been made, and I intend to inflict such fines as shall ensure the revenue shall not suffer. “1 have gauged tin* costs of the prosecution, and 1 think the country ou ™lit not to be put in tl-o position of having to pay to bring you to justice.”