2007 media releases
Hamilton JP jailed for two years for $1.1 million tax evasion
17 August 2007
A Hamilton JP and businessman received a two-year jail sentence in the Hamilton District Court today for tax evasion of more than $1.1 million. He was given leave to apply for home detention.
Mohammad Ashfaq Farooqi had earlier pleaded guilty to 45 counts of evading GST and income tax payments, after suppressing income of $2.49 million from 1999-2006 as the director of Rafia Trading Company Limited.
The evaded tax has since been recovered, but interest and penalties of about $2 million have not been met.
Inland Revenue Group Manager Assurance, Martin Scott, said the sentence should send a strong message to other business.
"Despite the tax being repaid, the Court and Inland Revenue take a very serious view of tax evasion. The sentence reflects the importance the Court places on the integrity of the system this taxpayer set out to deceive."
"Businesses that dodge their tax responsibilities make it very hard for honest business people to compete", he said.
In the court, Judge Joanna Maze said one must conclude that this deliberate and determined offending was only brought to an end by the Commissioner.
Inland Revenue began investigations in May 2006 into the tax affairs of Rafia Trading Company Limited trading as superette Flagstaff Foursquare.
In February 2007, Inland Revenue discovered the defendant had left the country. The Commissioner's uncertainty over Farooqi's intentions lead to tax assessments involving $2.49 million of suppressed income and more than $1.1 million in unpaid income tax and GST.
The suppressed income was traced to multiple unexplained cash deposits in bank and stockbroker accounts and foreign telegraphic transfers.
A warrant was issued and Farooqi was arrested when he returned to New Zealand in March.
Ends
For further information contact:
Adrienne Perry
Senior Media Advisor
04 890 1698
029 890 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
- 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
- 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
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Phone 04 890 1698 or email mediaqueries@ird.govt.nz
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New Zealand
Date published: 20 Aug 2007
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