First
ever. A taxpayer was discharged without
conviction after pleading guilty to tax evasion. Apineru Kerenise Malu completed 220 hours of
voluntary community work and saved $6200 towards unpaid tax before being discharged
without conviction and ordered to pay another $26,200 by instalments towards
tax evaded of $178,000.
Inland Revenue
appealed. This was a very generous
sentence, said the Court of Appeal, while dismissing the appeal. Government legal advisers could find no
previous example of a taxpayer being discharged after pleading guilty to tax
evasion.
The Court was told Mr
Malu was previously self-employed as a marketing consultant. He failed to file income tax and GST returns
for over four years. Cultural
expectations were the reason, he explained.
On his father’s death in Samoa he assumed the responsibilities of matai
for his extended family. Tax payments
were diverted to meet cultural obligations.
He did belatedly file the necessary tax returns. This crystallised the extent of his default. It was open to the trial judge to grant a
discharge on the evidence before him, the Court of Appeal ruled. Mr Malu was genuinely remorseful. He now had employment in the state
sector. He would lose his job and future
career prospects if convicted. He had
evidenced a commitment to paying all tax arrears while continuing to support
his extended family.
R. v.
Malu – Court of Appeal (29.11.17)
18.014