TAXATION FRAUD

Sun (Auckland), Volume I, Issue 293, 2 March 1928, Page 1

TAXATION FRAUD

Three Brothers Pay £500,000 As Compromise With Crown CHARGE OF CONSPIRACY LIKELY AN a.etion involving a claim amounting to £366,000 by the Taxation Department against three brothers, Alfred, Louis and Emanuel Abrahams, financiers, has commenced in the High Court at Melbourne. The case is the outcome of raids by 18 constables and 20 taxation officials last August, when safe-opening -experts were employed, and eight motor-car loads of documents seized.

Received 11.30 a.m. MELBOURNE, To-day. The Commissioner of Taxation claimed that one brother, Alfred, in his return for the year ended .June 30, 1924, understated the amount of his income, which he alleged to be £3,214, whereas it was £35,355. In 1925 he stated that his income was £3,506, whereas it was £38,054. The commissioner claimed that the evasions of tax amounted to £10,221 in 1924, and £9,543 in 1925. In 1926, the commissioner said, it was £7,792. He claimed the penalty of £SOO provided by the law atid treble the

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amount in each case, which amounted to £54,172. The second brother. Louis Abrahams, owed £76,631. Mr. Justice Starke remarked that the penalties on the pleadings would amount to £266,000, to which had to be added another £IOO,OOO, which the three of them would have to pay in tax. One of the brothers, Emanuel, had stolen out of the country and could not be traced. The defendants admitted the truth of the commissioner’s case, and said that they had paid the sum of £500,090 in satisfaction. Mr. Justice Starke expressed surprise that the Crown had compromised with the taxpayers. He considered that the pleadings and defence alike disclosed conspiracy, and that there should have been- a prosecution under the Crimes Act. Judgment was reserved.—A. and N Z. On August 15, acting on warrants issued on information sworn by Mr. T>. J. Birch, senior investigation officer of the Taxation Department, 18 constables and 20 taxation officials conducted raids on a small arms company in Elizabeth Street, Melbourne, and on the residences of the company’s solicitors and other persons believed to be associated with the concern. Safe-opening experts, with an oxyacetylene apparatus, accompanied the party. In two instances their services were required to open safes and strongrooms. Eight motor-car loads of documents were seized in the raids.