Butcher Is Fined £420 For False Income Tax Returns

Taupo Times, Volume VI, Issue 287, 8 August 1957, Page 5

Butcher Is Fined £420 For False Income Tax Returns

FINES totalling £420 and costs £39/10/- were imposed by Mr W. A. Harlow, B.M., on W illiam Edivard Price (Mr R. A. Potter, Rotorua), butcher, in Taupo Police Court on eight charges of wilfully making false returns of income frorn 1949 to 1956 inclusive. The magistrate said the case did not warrant the maximum penalty.

Alr J. D. L. Corry, for tlie Inland Revenue .Department, said Price had been in business since 1948 at Taupo! on his own account. Before that he worked for wages. During the period under review the books were kept and returns made by accountants "The discrepancies consist of suppressed saies and oue item of capital expenditure charged in error by the accountants to purchases. Total deficient tax over the period of eight years was £947 4s 4d, plus social security charge of £169 17s 3d, or £1117 gross. PERSONAL EXPENSES "Total income returned was £20,523, whereas the income has been assessed at £23,022. There is no suggestion that any large amounts liave been hidden away ; it has all gone out of tlie till, as far as the investigation discloses. for personal expenses, and so on." Mr Potter said defendant was a hard-working man who did not gamble, and did not drink. Tlie deficiency of £2499 in his tax returns ineluded £351 8s (>d whicli had been debited to purchases instead of to a building account. "That was tlirough 110 fault of his, but an error oi" his accountants. That leaves approximately £2100, whicli is an average over the years of about £250 to £200 deficiency. "That is arrivecl at by the department through a system of writing back, where they assess what they think would be a reasonable amoimt for a man's living expenses aceording to his station in life.

"For the year ended 1954 the turn over was £19,700. For that year the department estimated a total of £959 would be reasonable living expenses, deducted £756 12s 9d, whicli left a deficiency of £193. No Hidden Assets "There is no suggestion of any hidden assets or hidden trading. I submit that the figures could easily be below that. He paid petty expenses out of the till, and I consider the average deficiency over the eight years is very low, in view of the turnover." Ali- Harlow: For the last three years, virtually the deficiency is accounted for by the difference between the amount that Price showTed as liis living expenses and the amount whicli the inspector arbitrarily fixed as his living expenses. Mr Corry: The only explanation is that the department, with tlie inflationary tendency today, would allow a greater sum each year. The inspector said it was obvious he had taken money from the till for personal and living expenses. "There is nothing that suggests the taxpayer built up a large fund." Alr Harlow : The amounts involved here are substantial, and the Court must take a serious view of it, but I do not consider it warrants the maximum penalty. . Price was convicted 011 all eight counts.