Income Tax Charges.

Hokitika Guardian, 18 December 1922, Page 4

Income Tax Charges.

FIXES OF £IOO IMPOSED. WELLINGTON. December 10. A summons case ol unusual propoitiems was called before Air F. K. Hunt, S.AL, at the Alagistrate’s Court to-day, the defendant, Samuel Turner, having to answer two charges of negligently making a lalse return to the Income Tax Commissioner. Air P. S. K. Alacassey prosecuted, and defendant. who pleaded guilty, was represented by Mr R. L. Afacalister. Defendant, said Air Alacassey, was a well-known mountaineer, and he had for many years past been employed by the firm of Lonsdale and Company at a salnrv of about £I2OO per year. Be had dealings with the Australian Salt Company, bv whi.-h lie considerably supplemented his income, and it al.-o was suggested that by private speculations in salt still more money acciiiin’lnted. With regard to the .information laid in connection with ALivch 1921. defendant return his income as being about £1370. whereas it was assessed by the department at C 4037. ' fn 1020 the amount set down by TurI net- was £1370. but the depaitment I maintained that his income for that | particular year was £8959. It wms thought that the differences between the assessments of Turner and those of the department represented amounts made by defendant in his dealings in salt, and to which he had not made reference. Apart from the above defendant also invested freely in piopurt.y, etc., and had made substantial loans. Afr Afacalister explained that besides his -.wit private income defendant was interested in that of a. company trading as "Samuel Turner. Ltd.” As far ns defendant’s personal account was

concerned everything was in order with the exception of the omission of a suspense account, which on the advice of an accountant hail boon opened some time ago when Turner was experiencing difficulty in obtaining necessary shipments of salt. The account was necessary to hack contracts. It defendant suffered any heavy losses lie would have had the suspense account to fall back on. This account was at the root of all the trouble, and it was very unfortunate that ‘defendant had not mentioned its existence to the commissioner. Under these circumstances counsel asked that a nominal fine be inflicted. Air Alacassey pointed out that Turner hid drawn large sums of money f:om the suspense account for his own private use. The Alagistrate: I can’t see a redeeming feature in the whole ease. This man has omitted to account for some thousands of pounds. Ho may he unfortunate, blit he is well ofF and can afford to pay for Lis knowledge. He is fined £IOO on each of the two charges.