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2007 media releases

Tax agent fined $10,000 for refusing to cooperate with Inland Revenue
30 March 2007

A Blenheim tax agent was fined $10,000 yesterday in the Blenheim District Court for refusing to supply information to Inland Revenue.

Richard John Cragg, who operates as K & J Consultants Ltd, had earlier pleaded guilty to one charge under the Tax Administration Act. Mr Cragg's company does general accounting work for clients including preparation of annual accounts and the filing of various income tax returns.

The court was told that in 2005 Inland Revenue identified some anomalies in the refund patterns attributable to clients of the company, and began investigating whether clients had actually been charged the full amount of expenses indicated on their returns.

The investigator asked Mr Cragg to supply certain information so the investigation could proceed. There was no response, nor did Mr Cragg respond to subsequent letters.

In February this year, in response to a phone call from the investigator, Mr Cragg said he was simply too busy to comply with the request. Mr Cragg has a previous conviction for the same offence.

Lynley Sutherland, of Inland Revenue, said New Zealand's tax system relies on the honesty and integrity of the professional people working in the system.

"People must supply information when we ask them so Inland Revenue can make sure that everyone is paying their fair share of taxes," said Ms Sutherland, Area Manager Investigations.

 

For further information contact:

Alison Welch
Senior Media Advisor

029 890 1930

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Corporate Affairs
Inland Revenue

To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.

P O Box 2198
Wellington 6140
New Zealand


Date published: 03 Apr 2007

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