2007 media releases
Levin man sent to jail over $45,000 in GST fraud
25 May 2007
A Levin resident was today sentenced to five months in prison after pleading guilty to six charges of fraudulently using a document to receive GST refunds.
Tekoli Masoe, aged 48 and previously a youth worker with the Ministry of Justice, filed six false GST returns between December 2004 and April 2006 and fraudulently claimed over $45,000 in GST refunds. He was sentenced in the Levin District Court today, and given leave to apply for home detention.
Inland Revenue initially contacted Mr Masoe regarding a GST return claiming a refund of $24,844.44. Documentation was produced, allegedly a tax invoice from a local company, it was later found out that the company did not generate the invoice and Mr Masoe had not made any payment to the company in relation to the alleged tax invoice.
Further enquiries by Inland Revenue investigators through three interviews during June and July 2006 uncovered the extent of the fraud. Mr Masoe was allegedly undertaking the production and distribution of music CDs with no sales ever reported.
The charges laid against Mr Masoe were under section 228 of the Crimes Act 1961 for using documents dishonestly and with the intent to obtain financial advantage. Only $77.77 of the total $45,026.14 of falsely claimed GST refunds could be accounted for through proof of payment in support of transactions.
Mr Masoe admitted that only one of the six GST returns contained valid claims. He admitted to filing false returns that were either completely fictitious, supported by false tax invoices or payment had not been made.
After the sentencing, Paul McAuley, acting Area Manager of Investigations at Inland Revenue, said the prison termreflects the importance the Courts place on the integrity of the tax system Mr Masoe set out to deceive.
"It gives a strong message to those who deliberately attempt to defraud the revenue and shows the consequences of being found out. It also sends a message to people in the community that fraudsters will be caught and the Courts will deal severely with them," said Mr McAuley.
For further information contact:
Alison Welch
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
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New Zealand
Date published: 25 May 2007
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