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2005 media releases

Auckland barrister jailed for tax evasion
14 June 2005

A jail sentence imposed on an Auckland barrister and solicitor today sends out a strong message to anyone planning to evade tax, says Inland Revenue Auckland North Service Centre manager, Richard Philp.

As a result of charges laid by Inland Revenue, barrister and solicitor, Kathryn Louise Webber, was jailed for two-and-half years for tax evasion and theft from clients when she appeared in the North Shore District Court today.

She was sentenced to prison after pleading guilty earlier this year to 18 charges of using a document to evade income tax and GST on almost $1.2 million, and seven charges of misappropriating $46,450 from her clients. This followed an Inland Revenue investigation.

Mr Philp says the sentence reflects the severity of the offending. "This was a deliberate attempt to defraud the revenue by someone who holds a position of trust within the community and it is something the courts take seriously," he says.

Inland Revenue has specialist staff working on uncovering tax evasion, says Mr Philp. "People who deliberately flout the law are a small minority of taxpayers. We continue to take a firm approach with this group in fairness to the majority of taxpayers who do the right thing in fully meeting their tax obligations."

Between 1994 and 2004, Kathryn Webber ran a sole legal practice, specialising in property conveyancing, in Albany on Auckland's North Shore. During this time she made a deliberate attempt to defraud both the revenue and her clients.

Inland Revenue's analysis of Kathryn Webber's personal bank accounts revealed unexplained deposits in the period 1997 to 2002 of about $660,000. These sums were derived from her legal practice but were not included in her relevant income tax and GST returns.

Mr Philp says Inland Revenue encourages people who haven't been meeting their tax obligations to get their affairs in order. "For those who do nothing about correcting their situation in the hope that Inland Revenue does not find out about them, the consequences can be extreme, as this case demonstrates."

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

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Corporate Communications
Inland Revenue

For all media enquiries phone: 04 890 1698

For general communications enquiries
Phone: (04) 890 1936
Email: corpcomm@ird.govt.nz
Fax: (04) 498 5809

P O Box 2198
12-22 Hawkestone Street
Wellington
New Zealand

  

Date published: 14 Jun 2005

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