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2007 media releases

Businessman who "undercut the opposition" jailed for tax fraud
25 May 2007

Business people who cheat the tax system are undercutting honest businesses, Inland Revenue said today after an Auckland man was jailedfor two and a half years for fraud.

 Wilfrid Edward Gain, was sentenced today in the Manukau District Court for 12 charges of tax evasion, relating to $165,268 of GST and Income Tax.

Mr Gain had pleaded not guilty at a hearing in November 2006 but Judge J. E. Maze found him guilty, rejecting Mr Gain's statement as "lacking credibility and reliability" and saying she was satisfied Mr Gain had intended to evade the tax. 

Mr Gain had worked as a self-employed door manufacturer and wholesaler and had operated a company called Inwall Sliding Doors Ltd. Between April 2001 and March 2005 the business turnover was about $1.1 million. Judge Maze said Mr Gain had a business policy of deliberately undercutting the opposition and competitors to get work.

In sentencing today, Judge Epati said this was serious offending, and there was a high level of premeditation.  Tax fraud was a fraud against all taxpayers, the judge said.

Inland Revenue had sought a custodial sentenceand said it was important for the business community that there was a level playing field.

Tracey Lloyd, Area Manager Investigations, said Inland Revenue owed it to all the honest businesses who do comply with their tax obligations to make sure that rogue operators are brought to account.

"The custodial sentencewas a fair outcome, given the amount of tax evaded, that it was over a four-year period, Mr Gain's lack of cooperation during our investigation, and his lack of remorse," said Ms Lloyd.

"Taxes are used to fund schools, hospitals, and other government and community services," she said. "People who try to rip off the system are stealing from the community."

 

For further information contact:

Alison Welch

Senior Media Advisor (acting)

Inland Revenue

Phone (04) 890 1698

Alison.welch@ird.govt.nz

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Communications and Inquiry
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: 25 May 2007

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