2007 media releases
Scott Anderson bankrupted for unpaid debt of $13 million
18 June 2007
Scott Crawford Anderson was bankrupted today for unpaid tax debts of $13,756,234.76.
Mr Anderson was involved in promoting the Actonz Scheme during the 1990s, which was ruled to be tax avoidance in the case of Erris Promotions Limited & Ors v Commissioner of Inland Revenue in 2003.
The bankruptcy was adjudicated by Associate Justice Gendall in the Wellington High Court.
After the adjudication, Inland Revenue Manager of National Collections Enforcement, Graham Pomeroy, said that most taxpayers meet their obligations of their own accord. "Occasionally some taxpayers choose not to do so. If they fail to meet their obligations, we need to ensure that appropriate action is taken and, in some situations, this will include the bankruptcy of individuals who have unpaid tax debts.''
Actonz Management Ltd purported to purchase six software packages at the end of 1996 for $685 million. A large number of investors took part in a joint venture and claimed depreciation losses in their tax returns from this purported $685 million purchase. The total depreciation involved was 33% of $685 million, or about $226 million.
The Inland Revenue investigation began in late 1998. The Commissioner of Inland Revenue disallowed the claims of the Actonz investors and imposed penalties. Penalties for tax avoidance are 100% of the tax owing.
In November 2003, Justice Ronald Young upheld Inland Revenue's claims in all respects. He held that three of the six purported transactions were shams, in that the software did not exist or the people from whom the packages were purportedly bought did not own them. He held that depreciation claims were available for only $6.00 (Editors: $6.00 is correct), not $685 million, and that the transactions constituted a tax avoidance scheme.
Four hundred and twenty-two investors were involved. Of these 66 decided not to claim the purported tax advantages, and another 36 settled before the case went to court. Inland Revenue has since finalised settlements with nearly all of the 310 remaining investors.
Ends
For further information contact:
Adrienne Perry
Senior Media Advisor
Inland Revenue
04 890 1698
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
- 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
- Accountant's low profits prompted tax audit
- "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: 18 Jun 2007
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