Inland Revenue welcomes court decision in tax evasion case

26 July 2013

Inland Revenue welcomes court decision in complex tax evasion case

Inland Revenue has welcomed the conviction of three businessmen in the Wellington High Court today involved in complicated and determined tax evasion schemes.

Group Tax Counsel, Graham Tubb, said those involved used offshore bank accounts, false invoices and false deductions to evade tax and repeated restructurings of the principle business to protect and conceal the proceeds of the fraud.

Paul William O’Connor was found guilty on a total of 14 charges, out of 15, of tax evasion relating to filing of false tax returns and evading the assessment and payment of tax by his business entities.

Scott Crawford Anderson was found guilty of two charges of aiding O’Connor to evade tax by providing fictitious invoices. Brent John Gilchrist was acquitted of two charges of aiding O’Connor to evade tax.

Gilchrist and Anderson were found guilty of 6 charges of aiding and abetting the fourth co-accused to evade tax through the provision of fictitious invoices.

A fourth co-accused (who presently has name suppression) had earlier pleaded guilty to 6 charges for his part in the offending.

Mr Tubb said O’Connor evaded $1.8 million of tax over a period of 13 years.

“The transactions went well beyond sharp practice or clever accounting. The offenders were individually and collectively fraudulent and were designed to allow a very profitable business pay little or no tax, leaving the burden on other taxpayers.

“This case serves as a reminder that we have placed significant resources into identifying tax evasion arrangements and we take appropriate action when the rules are deliberately broken,” Mr Tubb said.

ENDS

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