The fact that falsification of documents would lead to embarrassment and punitive sentence was once again proved at the Tauranga District Court last fortnight.
Michael Philip Graham Yorke was sentenced to 12 months home detention for attempting to obtain $2.37 million in GST refund for an incomplete business deal.
The Mt Maunganui man was also obliged to perform 200 hours of community service.
The Court heard that he had registered for GST in early 2006 listing his taxable activity as an internet website designer.
A month later, he filed his GST return with Inland Revenue Department (IRD) claiming inputs of $21,375,000 resulting in a GST refund position of $2,375,000.
The Department did not release the refund but commenced an inquiry and asked the defendant for documents in support of his claim.
Yorke thereafter provided a tax invoice for the purchase of 10,000 web licences at a cost of $2250 each from a recently formed Hamilton base company.
Inquiries with the company confirmed a contract, but payment was never made.
Yorke had claimed that a part payment of $18 million had already been made in cash.
But inquiries showed that the claim was false and that he was never capable of making such a large payment.
The Court heard that Yorke approached his bank within a week of submitting the claim and made arrangements for an intended deposit of $2.35 million to be disbursed to other accounts, family and friends.
IRD Assurance Manager (Investigations) Jonathan Matthews said that the case was one of “calculated attempt to obtain a substantial amount of taxpayer money.”
“The sentence shows how seriously the courts view this sort of offending and the prosecution taken against Mr Yorke demonstrates the fact that the Department can and will detect fraudulent claims and hold people to account,” he said.
