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2005 media releases

Auckland consultant gets 12 months in jail for GST fraud
11 August 2005

An Auckland tax and property consultant was yesterday sentenced to 12 months in prison, in a case that demonstrates computers can hold important evidence in tax prosecutions.

William Henry Hawken was yesterday  sentenced in the Manukau District Court to 12 months in prison after earlier being found guilty of six charges relating to GST fraud on property deals. He was found guilty on one count of forgery, one of tax evasion and four counts of using a document to obtain pecuniary advantage. The Crown sought reparation of $120,000.

The Court heard that Hawken, who controlled three different companies, wrongly claimed GST refunds.  This included using fake invoices and altering documents to support other GST claims; and claiming GST back twice on the purchase of one property. The frauds involved one Queenstown and three Northland properties.

As part of the investigation police, working with Inland Revenue officers, seized Hawken's computer to obtain some of the evidence needed. In a pre-trial hearing last July the defendant challenged the admissibility of evidence from the computer seized by police. However, in the hearing Justice Singh found the search and seizure was lawful, allowing the case to proceed.

Inland Revenue Auckland Service Centre Manager Loraine Elliott said: "These were cynical and blatant frauds, carried out over a number of years. Tracing the pattern of fraud and locating the evidence took a great deal of work from our investigators, and it is very pleasing that the Courts have now stated plainly that evidence obtained from the computer seized by police is valid and admissible. Tax fraud is a serious crime - it not only robs the national revenue, but also makes it harder for honest businesses to compete on an even footing. Today's sentence reflects the seriousness of this: people who try to commit tax fraud will get caught and punished appropriately."

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: 11 Aug 2005

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