Tax evasion results in prison
16 January 2014
The sentencing of a Taranaki man to nine months in jail is a warning to those who deliberately provide misleading information to Inland Revenue.
Roger Brown was sentenced in the Hawera District Court yesterday for deliberately falsifying details in his GST returns.
Investigations and Advice Group Manager, Karen Whitiskie, said that dishonestly claiming GST on property has consequences and any deliberate attempt to evade tax obligations can be very serious.
“The offender in this case came to our attention as he had not completed all required steps in filling his GST returns over a period of two years”.
When contacted Mr Brown confirmed his taxable activity as a courier driver, changed later to long haul freight, and that claimed expenses of $175,000 related to purchasing a truck.
A subsequent GST return claiming the value of his residential home lead to an investigation.
During this investigation Inland Revenue found that the details on each of the returns filed were false. Inland Revenue was advised there had been no courier driver or long haul freight taxable activity and that no vehicles were ever purchased.
In total, Brown obtained $24,045 in payments to which he was not entitled.
"Brown’s actions were a deliberate attempt to claim money to which he was not entitled. He was fully aware of the rules and that his actions were illegal. He was funding his lifestyle by making false GST refund claims and he is now facing the consequences of not being honest with his tax affairs,” Ms Whitiskie said.