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IRD cases in the courts

October 3, 2019

Working with customers to get their tax right is IRD’s preferred approach. However, when all other avenues fail, we consider taking prosecution action.IRD has more than 90 cases before the courts as of the end of June and sentences have been handed down over recent months for tax evasion and other offences.

Tax cases receive more media attention each year reflecting public concern about appropriate action being taken when taxpayers break the law. Here are a few of the tax cases Inland Revenue Department has taken through the courts to sentencing in recent months.

Commissioner of Inland Revenue V Peter G Lochead

A Christchurch man has been sentenced to 7.5 months home detention and 120 hours community work on one representative charge of aiding and abetting another person in their failure to account to the Commissioner for tax deductions made from employees’ wages.

Lochead was the sole director/shareholder of an engineering services company which went in to voluntary liquidation in 2017 owing $461,803.34 to Inland Revenue. The company had failed to account for $122,734.85 of PAYE deductions for 11 months.

His tax agent and business advisor confirmed Lochead would have paid trade creditors and wages in preference to Inland revenue and other creditors.

Commissioner of Inland Revenue V Allan David Gilmour

An Auckland carpet layer has been fined for not filing GST and PAYE returns.Allan David Gilmour was sentenced in the Manukau District Court and fined $4,600 and ordered to pay $130 court costs.

Gilmour faced 23 charges.

For three years he didn’t file income tax returns and from September 2015 until September 2018 he didn’t file GST returns.