The Papakura District Court has sentenced an Auckland woman to four months of community detention and 200 hours of community service on seven charges of tax evasion under the Tax Administration Act.
Candice Irene Melgers had allegedly claimed Working for Families Tax Credits to which she was not entitled.
The 26-year-old woman had earlier pleaded guilty to falsely claiming the tax credits totalling about $24,000.
Inland Revenue (IR) Investigations Manager (Assurance), Jonathan Matthews said that offending occurred between April 2005 and March 2010.
“IR’s investigation established that the defendant’s three children were not in her care for most of the five-year period in which she received the tax credits. Apart from receiving money to which she was not entitled, she attempted to claim further payments totalling over $4000,” he said.
According to him, this was a case of blatant dishonesty and such actions were equal to theft of taxpayer money.
Mr Matthews said that the defendant declined to attend interviews with IR officers during the investigation.
But she pleaded guilty at the first opportunity when she appeared in court.
“Melgers understood the tax rules and her guilty plea was an admission that she had deliberately ignored them. Ultimately she was caught and this prosecution is the result of her cheating the system,” Mr Matthews said.
He said IR was working to make it easier for customers to receive their Working for Families Tax Credits as quickly as possible but would also take action against those making fraudulent claims.
“Our officers examine all tax credit claims and this case is another reminder that we are using our resources and our investigative methods to detect tax evasion and fraud. It is also a reminder that we will catch those who are deliberately non-compliant,” Mr Matthews said.
