Businessman who "undercut the opposition" jailed for tax fraud

Business people who cheat the tax system are undercutting honest businesses, Inland Revenue said today after an Auckland man was jailed for two and a half years for fraud.

Wilfrid Edward Gain, was sentenced today in the Manukau District Court for 12 charges of tax evasion, relating to $165,268 of GST and Income Tax.

Mr Gain had pleaded not guilty at a hearing in November 2006 but Judge J. E. Maze found him guilty, rejecting Mr Gain's statement as "lacking credibility and reliability" and saying she was satisfied Mr Gain had intended to evade the tax.

Mr Gain had worked as a self-employed door manufacturer and wholesaler and had operated a company called Inwall Sliding Doors Ltd. Between April 2001 and March 2005 the business turnover was about $1.1 million. Judge Maze said Mr Gain had a business policy of deliberately undercutting the opposition and competitors to get work.

In sentencing today, Judge Epati said this was serious offending, and there was a high level of premeditation. Tax fraud was a fraud against all taxpayers, the judge said.

Inland Revenue had sought a custodial sentence and said it was important for the business community that there was a level playing field.

Tracey Lloyd, Area Manager Investigations, said Inland Revenue owed it to all the honest businesses who do comply with their tax obligations to make sure that rogue operators are brought to account.

"The custodial sentence was a fair outcome, given the amount of tax evaded, that it was over a four-year period, Mr Gain's lack of cooperation during our investigation, and his lack of remorse," said Ms Lloyd.

"Taxes are used to fund schools, hospitals, and other government and community services," she said. "People who try to rip off the system are stealing from the community."

ENDS

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