Date: 4 May

"Not a lot" of effort to pay taxes results in jail term for tax evasion

A Waitakere man was sentenced to 18 months imprisonment yesterday (3 May) after pleading guilty to tax evasion totalling nearly $150,000.

The self-employed courier driver had told Inland Revenue investigators that he'd put letters from the tax department "in a pile", and had made "not a lot" of effort to sort out his GST and income tax returns.

Peter William Bicknell, 36, of Titirangi, was facing 73 charges of failing to account for income tax and GST, and failing to file income tax and GST returns. He was also ordered to pay $1500 solicitor's costs and given leave to apply for home detention.

The Waitakere District Court heard that Bicknell registered for GST in February 1999, but had not paid any tax on his self-employed income or on GST collected over the eight years since then. The amount involved totalled $143,389.83.

Bicknell was interviewed by Inland Revenue at the end of 2005 and admitted that he knew he must file returns and pay income tax and GST owing. He told the interviewers that he had received many letters from Inland Revenue about his overdue taxes, but he said he had "put them in a pile". When asked what efforts he had made to file the returns that were outstanding, he replied "Not a lot".

Tracey Lloyd, of Inland Revenue, said Inland Revenue owed it to the vast majority of honest taxpayers who do comply with their tax obligations to make sure that rogue operators are brought to account.

"The prison term was a fair outcome, given the amount of tax evaded over such a long period." said Ms Lloyd, Area Manager Investigations.

"Taxes are used to fund schools, hospitals, and other government and community services," she said. "Everybody has to pay their share."

ENDS

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