EVADING TAXATION.

Taranaki Daily News, 16 December 1922, Page 5

EVADING TAXATION.

SAMUEL TUBNER PROSECUTED. HEAVY PENALTIES INFLICTED. H,y Telegraph.-~--Press Assn.—Copyright. M’ellington, Last Night. A summons case of unusual proportions was called before Mr. F. K, Hunt, S.M., at the Court to-day, the defendant, Samuel Turner, having to answer two charges of negligently making a false return to the Income Tax Commissioner. Mr P. S. K. Maca-ssey prosecuted and defendant, who pleaded guilty, was represented by Mr. R. L. Mac Alister. The defendant, said Mr, Macassey, was a \yell known mountaineer and he had for many years past been employed by*the firm of Lonsdale and Company at a salary of about £l2OO per year. He had dealings with the Australian Salt Company, by which he considerably supplemented his income, and it was also suggested that by private speculations in salt still more money was accumulated.

With regard to the information laid in connection with March, 1921, defendant returned his income as ‘being about £1370, whereas it was aM«wed by the department at £4037. In 1920 tlie amount set down by Turner was £1370, but the department maintained his income for that particular year was £8659. It was thought that the differences be tweed the assessments of Turner and those of the department represented the 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 property, etc., and had made ajrtwtantUl loans.

Mr. Mac Alister explained that besides his own private income defendant was interested in that of a company trading as “Samuel Turner, Ltd.” As far as defendant’s personal account was concerned everything was in order, with tlie exception of the omission of his “suspense account,” which, on advice of an accountant, had been opened some time ago, when Turner was experiencing coneiderable difficulty in obtaining the necessary shipments of salt. The account was necessary to back contracts; if defendant suffered any heavy losses he would have had the “suspense aceoimt’ to fall back on. Thie account was at the root of all tlie trouble and it was very unfortunate that defendant iiad not mentioned its existence to the commissioner. Under these circumstances counsel asked that a nominal fine he inflictedMr. Maeaasey pointed out that Turner had drawn large sums of money from the suspense account for his own private use. The Magistrate: “I can’t see a redeeming feature in the whole case. This man has omitted to account for thousands of pounds. He may be unfortunate, but he is well off and can afford to pay for his knowledge. He is fined £l9O on each of the two charges.” ACCOUNTANT CONVICTED. FALSE RETURNS ADMITTED. Christchuiyh, Last Night. C. W. Hervey, a secretary and accountant, and a member of the City Council, pleaded guilty to two chargee of making false returns of income in respect to his income for the year ended March, 1920, and also misleading or attempting to mislead the Commissioner of Taxes in respect to hie income for that year. Mr Donnellv (Crown Solicitor) said Hervey omitted to make returns showing £5l income from rents and £7Ol from the sale of property. A second charge related to trading done m petrol and other matters by the Canterbury Automobile Association, of whim Hervey was secretary. When an officer ot the department called Hervey satisfied him that the income on this account vlB only about £l5O, but further n. vestigation showed that the taxable m.come was £1550. The Association was taxed for £l5O, but the account, although kept in the Association’s name, was really Hervey’s. The department had not definitely deexfed to infliet a treble tax, but it practically followed as a matter of course. The maximum penalty was askad for in respect to the charge of misleading the officer, and on the other charge a nominal penalty was suggested. „ Mr. Gresson, who appeared for Her vev, said no amounts were concealed from the inspector, and moat of t accounts contained true entnes, which were left largely to subordinates. Tbe Magistrate said Herveys position as a public accountant made the offence more serious, but the mere of the charges meant a heavy penalty an? might affect Hervey’s p0..t.0n a» n member of the Accountants *>«»«>• He inflicted fines of £lO and £oo with costs and expenses. The charge- in re spect to 1921 were withdrawn.