The fact that tax evasion could be expensive and embarrassing was proved yet again at the New Plymouth District Court last week.
The Court obliged a local businessman to pay Inland Revenue Department (IRD) $1500 and pay the court its costs.
Stephen Blackman, owner of Plant and Platform Consultant Limited, was charged with the offense of failing to declare his salary of $150,150 in 2007 and $158,408 in 2008.
He pleaded guilty to the two charges of filing false income tax returns.
Earlier, in a letter to the Department, Blackman had said that at no time during the tax periods in question was he paid any money for his work at the Company.
“IRD may have been confused by the forms provided by my company. It contained impressive numbers preceded by a $ symbol,” he said.
He said he was unaware of the meaning of this symbol.
“I am not aware of anyone at the company who would swear under oath that this represented money paid to me ,” he told the court.
The Department’s Assurance Manager (investigations) Jonathan Matthews said the defendant deliberately tried to cheat the tax system by failing to declare income.
“As a businessman, Blackman wasted a lot of people’s time trying to complicate a simple process by choosing to deny that he received a shareholder salary and, among other things, by espousing a ridiculous, hollow argument over his supposed lack of understanding of the ‘$’ symbol.
“The dollar sign is an internationally recognised symbol for money. Despite trying to sidestep his tax responsibilities and saying he didn’t recognise the symbol, his obligation remained,” Mr Matthews said.
He said his Department was working hard to deal with tax evaders so that others who comply with the rules are not disadvantaged.
“Taxpayers expect to see their taxes going to public services, not to tax cheats. If any taxpayers are confused about their tax responsibilities they should speak to us, or contact their professional tax adviser,” he said.
