2009 media releases
Christchurch man jailed for GST fraud
2 October 2009
A Christchurch property developer has been jailed for two and a half years for GST fraud of more than $660,000.
Philip John Duncan was sentenced today in the Christchurch District Court after earlier pleading guilty to eight charges of tax evasion.
Duncan conducted his business through a complex structure of associated companies and trusts. GST was claimed on property purchases that were later cancelled, and claims were made for transactions that never took place.
Inland Revenue Investigations Manager, Lynley Sutherland, said the sentence sends a strong warning to others trying to make illegal gains from the tax system.
"Don't be tempted – it's not worth it. We have measures in place to identify irregularities in tax returns and business records. It's not a matter of if tax cheats will get caught, it's when," said Ms Sutherland.
In 1999, Duncan, through CHL Limited, bought properties in Alexander Street and Champion Street. CHL claimed GST on the purchase price of both properties. GST deductions were also claimed on proposed building development work. The deals did not go ahead, and Duncan failed to make adjustments in the company's GST returns. GST evaded came to $315,245.
In 2003, KB Developments Limited bought a property in Meadow Street. Duncan arranged for the company to claim GST on the purchase price. In 2004, the company also claimed for the purchase of four townhouse units at the same Meadow Street address. The deals fell through and the required adjustments weren't made in the company's GST returns. GST evaded totalled $133,222.
Duncan also arranged for Champagne Property Developments Limited and Pastoral Holdings Limited to claim GST on the purchase of townhouses in Olympic Lane and Meadow Street. These transactions never occurred. GST fraudulently claimed amounted to $215,485.
The total fraud and evasion for all properties amounted to $663,952.
Duncan is now bankrupt, so no order for reparation was sought.
For further information:
Saskia van Rijn
(04) 890 1743
(029) 890 1743
saskia.vanrijn@ird.govt.nz
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Corporate Communications
Inland Revenue
For all media enquiries phone: 04 890 1698
For general communications enquiries
Phone: (04) 890 1936
Email: corpcomm@ird.govt.nz
Fax: (04) 498 5809
P O Box 2198
12-22 Hawkestone Street
Wellington
New Zealand
Date published: 02 Oct 2009
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