Size of tax fines comes as a shock

Monday March 20, 2017 Published in Letters to the Editor

While reading the news about tax evasion in CI News last week, I was taken aback not only at the severity of the level of the fines but that the court saw fit to penalise the business twice for the same offences.

 

That is surely the effect of imposing fines not only on the company, but also on the director. What happened to the corporate veil?

There was also some talk that the tax department might take steps to wind up the company. Well if so, that would not be a sensible move because without a going concern there would be no way to generate the revenue necessary to pay the fines and arrears, would there?

Not forgetting the 20 employees who depend on the company to provide them with a job so they can feed their families.

It is interesting to note that seven global corporate giants such as Google, Apple and Amazon are accused of evading taxes by hiding their profits in tax havens. Apparently that leaves the smaller or medium-sizd enterprises to  carry the burden.

            Te Akaaroa

            (Name and address supplied)

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