2007 media releases

Cash businesses are in the spotlight
11 October 2007

Name suppression has been lifted for a Hamilton dairy owner convicted of tax evasion.

JB Superette's Harish Chandra Mistry was granted home detention last month after being sentenced to nine months imprisonment in the Hamilton District Court. He had earlier pleaded guilty to 31 charges of filing false GST and income tax returns.

Mistry has now paid Inland Revenue $169,582 in unpaid tax, owed by his two dairies in Te Awamutu and Hamilton between 1999 and 2005.

Inland Revenue's investigation found Mistry deposited around $419,000 cash from the businesses into the bank accounts of family members. He then attempted to disguise some of the cash taken by reintroducing it back into his company as a loan from a family member.

Hamilton Area Manager Neil Lewer said Mistry was uncooperative throughout the investigation. Mistry initially claimed records had been destroyed by fire and also refused to explain the cash deposits. In 2006, Inland Revenue resorted to exercising the Commissioner of Inland Revenue's statute power, issuing a Section 17 notice to obtain information.

The Court heard Mistry had accounting experience after taking papers at university in the 1980s. "This offending was a conscious effort to avoid paying tax over a long period of time."

Mr Lewer said the sentence reflected the importance of the integrity of the system Mistry set out to deceive. "It shows the consequences of being found out and sends a strong message that fraudsters will be caught and punished."

"It's a myth that tax fraud is a victimless crime. When someone evades tax, it makes it very difficult for honest businesses to compete. Mistry is an example of an individual increasing his personal wealth at the expense of others," he said.

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
• 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
• 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

more media releases ›

Corporate Affairs
Inland Revenue

To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
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P O Box 2198
Wellington 6140
New Zealand

Date published: 15 Oct 2007

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