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2005 media releases

Auckland Man jailed for tax fraud
13 May 2005

A 45 year-old Auckland man, who flew to the US to avoid prosecution for tax fraud, has been sentenced in the Auckland High Court today.

David Lawrence Marsters was sentenced to three-and-a-half years imprisonment after pleading guilty to 48 charges under 229A of the Crimes Act 1961. The total fraud amounted to $525,000 and involved false input claims and misuse of documents.

Marsters flew to the US soon after Inland Revenue began investigating his activities in 2001. Inland Revenue applied to have him extradited back to New Zealand to face charges. As a result of this application, the US authorities reviewed his stay in their country and subsequently deported him in May 2004.

On arrival in New Zealand, Marsters was released on bail. However, he failed to appear for his trial on April 5, 2005, and a warrant was issued for his arrest. He is also facing charges involving a forged New Zealand passport.

Inland Revenue Auckland Service Centre Manager Loraine Elliott says extradition proceedings were sometimes used in cases where people moved offshore to avoid prosecution for tax fraud.

She says that today's prison sentence reflects just how seriously New Zealand Courts view tax fraud.

"Inland Revenue welcomes the sentence which should help deter those contemplating this sort of action. Our job involves protecting the country's revenue from this type of abuse and our investigators are succeeding in catching those who deliberately defraud."

She adds: "Those who deliberately flout the law make up a very small minority of taxpayers and we will continue to take a firm approach with this group."

Anyone concerned that their tax affairs may not be in order should contact Inland Revenue as early as possible. There are often penalties for unpaid tax, but these can be reduced significantly through voluntary compliance.

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Date published: 13 May 2005

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