2007 media releases
Accountant's low profits prompted tax audit
14 May 2007
Suspicions about an accountant who was not making a profit led to an Inland Revenue investigation that concluded in the Rotorua District Court today with a sentence of 150 hours of community service.
Taupo tax agent Geoffrey William Lobb, 50, appeared for sentencing after earlier being found guilty on 12 charges of filing false returns with the intention of evading income tax and GST.
The court had heard that in 2003 Inland Revenue looked into the affairs of the Austin Lobb Family Trust after noticing that the trust was returning so little income that it would have been impossible for the trustees to meet day to day living expenses.
An Inland Revenue investigator also observed that it was unusual for an accountant not to make a profit. Inland Revenue's investigation revealed unreturned income and overstated expenditure for the periods 2001, 2002 and 2003 amounting to $181,809. This resulted in a tax shortfall of $59,946 including $16,161 relating to unreturned income. The tax shortfall has been paid.
Stuart Duff, of Inland Revenue said the tax system relies on the integrity and honesty of the professionals working in the system and the sentence reflects the severity of the offending.
""This is a disappointing instance where a tax agent has breached the trust of Inland Revenue and the taxpaying public," said Mr Duff, Area Manager Investigations.
"Inland Revenue has a very positive relationship with tax agents, the majority of whom are reputable and handle large sums of money competently on behalf of their clients. Tax agents are important intermediaries in helping around 1.5 million taxpayers meet their tax obligations," Mr Duff said.
Inland Revenue has specialist staff working on uncovering tax evasion, says Mr Duff. "People who deliberately flout the law are a small minority of taxpayers, but we will 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."
Contact:
Alison Welch
Senior Media Advisor
029 890 1930
Other media releases this year
- Draft guidelines released for new R&D tax credit
- Man extradited from Australia to face tax charges
- Working for Families Tax Credits to be made early
- Inland Revenue alerts tax professionals
- 'Money man' behind major tax scam jailed
- Third conviction in Rawleigh tax evasion case
- Samoan chief receives two years' home detention
- Early working for families tax credits scheduled
- Cash businesses are in the spotlight
- Inland Revenue transfers first KiwiSaver funds to scheme providers
- Late filers advised to contact Inland Revenue
- Wellington Inland Revenue staff to centralise
- Christchurch businessman fined $20,000 on tax charges
- Hamilton JP jailed for two years for $1.1 million tax evasion
- Businessman pleads guilty to $1.3 million in tax charges
- Jail term extended for Tauranga tax evader
- Inland Revenue offers Language Line
- Inland Revenue wins prestigious IT award
- Inland Revenue simplifies tax with Business Is Booming
- Inland Revenue reassures people affected by weather
- Customers urged to contact Inland Revenue
- Inland Revenue issues GST statement on unconditional property sale agreements
- KiwiSaver information readily available from Inland Revenue
- Scott Anderson bankrupted for unpaid debt of $13 million
- Inland Revenue welcomes 'Trinity' court ruling
- Christchurch tourism operators' concern leads to community service for tax evader
- Inland Revenue welcomes prison sentence for GST fraud
- Levin man sent to jail over $45,000 in GST fraud
- Businessman who "undercut the opposition" jailed for tax fraud
- "Not a lot" of effort to pay taxes results in jail term for tax evasion
- Tiler in court for keeping staff tax payments
- Northland flood victims should call if having problems with tax payments
- Tax agent fined $10,000 for refusing to cooperate with Inland Revenue
- Early Working for Families Tax Credits payments
- Nelson man in court for not passing on employees' tax payments
- Tax season underway
- Businesses foolish to try to suppress details of income
- Dairy owner in court for cheating on taxes over seven years
- Two years' prison for 146 tax offences
- Refusing to cooperate with Inland Revenue lands couple in court
- Prison sentence upholds integrity of tax system, says Inland Revenue
- Early family assistance payments
- Tax payments due on 7 February
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: 14 May 2007
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