2008 media releases
Dairy owner sentenced for hiding half a million
5 December 2008
A Napier dairy owner, who hid income of nearly half a million dollars to evade tax, has been sentenced to six months community detention.
Farrukh Hashmi was sentenced in the Napier District Court today after earlier admitting 37 charges of failing to pay income tax and GST of $195,000.
Inland Revenue Assurance Manager, Investigations, Richard Philp, said the courts view tax evasion very seriously.
"If someone evades tax, then everyone else misses out. People who rip off the system like this are robbing the community of funds for schools and hospitals."
"Businesses that act like this are also making it very hard for honest businesses to compete, and we're committed to strong action in these cases to ensure a level playing field," said Mr Philp.
Hashmi had unexplained cash accumulated both before and after his purchase of Napier's Carlyle Street Store in January 2004.
The bulk of the money was used to buy rental properties.
When interviewed, Hashmi told Inland Revenue he wasn't aware of his responsibilities. He said: "Where I come from, we didn't have to pay tax."
He admitted suppressing income of $487,000 over four years.
Hashmi has paid Inland Revenue $165,000 after selling some property, but still owes more than $220,000 in outstanding tax, student loan repayments, penalties and interest.
He has also been ordered by the court to pay reparation of $100 per week.
For further information:
Catherine Delore
(04) 890 1743
(029) 890 1743
catherine.delore@ird.govt.nz
Other media releases this year
- Accountant sentenced for tax evasion
- Invercargill accountant jailed for tax evasion
- Tauranga court jails man for tax evasion
- Most Working for Families recipients not charged interest for overpayments
- Former Kaikohe farm manager jailed for tax evasion
- Auckland plasterer jailed for tax evasion
- New callback service rolled out across Call Centre
- Former employee sentenced
- KiwiSaver report released
- Inland Revenue expands e-services
- Do-it-yourself tax refunds
- Employers reminded about new tax rates
- Former Inland Revenue employee pleads guilty to corruption
- Sentencing strong message for contractors
- Accountant jailed for defrauding clients and Inland Revenue
- Inland Revenue pilots callback system to help customers
- Inland Revenue proposes changes to company tax return
- Agricultural contractor sentenced
- Jail for horticultural student
- Tax fraud results in jail term
- Thousands apply for student loan amnesty
- Early Working for Families Tax Credits payments
- Inland Revenue wins People's Choice NetGuide web award for second time
- Waikato couple sentenced for tax evasion
- Inland Revenue warns about income diversion
- Report of investigation of an error in tax revenue numbers
- Tax credits for people made redundant
- R&D tax credit goes live
- Student Loan amnesty - last chance to apply
- Revised financial statements
- Tax advice for investors in failed finance companies
- Tax advice for property investors
- Provisional tax gets easier
- Early Working for Families Tax Credits payments
- IRD numbers about to get longer
- Tax authorities work together to stop international tax evasion
- Inland Revenue helps drought-affected farmers
- IRD numbers available at NZ Post and AA
- Inland Revenue warns against divulging personal details
- Second jail term for major tax scam
- Welcome surprise for owners of forgotten money
- End-of-year tax date fast approaching
- Time running out for student loan amnesty
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: 08 Dec 2008
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