XN000022-1978-05-22 — Page 2

MONDAY, MAY 22, 1978

CHANCES AND COST OF BEING CAUGHT FOR TAX EVASION ARE GREATER

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THE COMMISSIONER OF INLAND REVENUE, MR. R. V. GIDDY, WARNED TODAY THAT BOTH THE CHANCES AND COST OF BEING CAUGHT OUT FOR TAX EVASION ARE GREATER NOW THAN BEFORE.

SPEAKING ON +TAX EVASION - A PROGRESS REPORT+ AT THE LUNCHEON MEETING OF THE ROTARY CLUB OF VICTORIA TODAY, MR. GIDDY SAID HIS DEPARTMENT'S CAMPAIGN AGAINST TAX EVASION IS BEGINNING TO SHOW RESULTS BUT CAUTIONED THAT IT HAS BEEN A LONG HAUL AND THERE IS STILL A VERY LONG WAY TO GO.+

HE SAID: THERE IS A LOT OF WORK STILL TO BE DONE AND MY STAFF AND I HAVE EVERY INTENTION OF TACKLING IT.

MR. GIDDY OUTLINED THE STEPS TAKEN BY HIS DEPARTMENT IN ITS CAMPAIGN AGAINST TAX EVASION WHICH HE REVEALED TWO YEARS AGO.

HE SAID: +PHASE 1 OF OUR CAMPAIGN HAD BEEN TO GET THE LAW STRENGTHENED AND THE PENALTIES INCREASED.

+PHASE 2 HAD CONSISTED OF ENCOURAGING PERSONS WHO HAD BEEN GUILTY OF EVASION IN THE PAST TO COME FORWARD AND MAKE FULL VOLUNTARY DISCLOSURES OF UNDERSTATEMENTS AND OMISSIONS. THIS HAD BEEN COUPLED WITH ISSUE OF GUIDELINES TO PRACTISING ACCOUNTANTS ON THE CALCULATION OF UNDERSTATEMENT WHERE, AS IS SO OFTEN THE CASE, PROPER BUSINESS RECORDS HAD NOT BEEN KEPT.

MR. GIDDY SAID PHASE 3 WOULD BE THE STEPPING UP OF THE ACTIVITIES OF THE INVESTIGATION BRANCH.

+ADDITIONAL STAFF HAVE BEEN RECRUITED AND, WHAT IS JUST AS IMPORTANT, TRAINED IN INVESTIGATION TECHNIQUES; + MR. GIDDY SAID.

+ THE NET RESULT IS THAT WE NOW HAVE AN ENLARGED AND VERY PROFESSIONAL INVESTIGATION SECTION AND IT IS PROBABLE THAT THERE WILL BE FURTHER STAFF INCREASES BECAUSE THERE ARE AT PRESENT STILL MORE CASES AND POTENTIAL CASES THAN CAN BE HANDLED, HE ADDED.

COMMENTING ON THE ACHIEVEMENT OF THE INVESTIGATION BRANCH IN THE LAST TWO YEARS, MR. GIDDY SAID THE BRANCH COMPLETED 104 CASES INVOLVING BACK TAXES AND PENALTIES UP TO $28 MILLION DURING THE LAST FINANCIAL YEAR COMPARED WITH 77 CASES AND LESS THAN $10 MILLION OF TAX AND PENALTIES IN 1975-76.

FURTHERMORE, MR. GIDDY POINTED OUT THAT ASSESSORS OF THE DEPARTMENT OUTSIDE THE INVESTIGATION SECTION HAVE BEEN ENCOURAGED TO CARRY A FEW OF THE MORE STRAIGHT FORWARD CASES OF SUSPECTED EVASION WITH THE TAX AND PENALTIES INVOLVED IN THESE CASES AMOUNTING TO ANOTHER $2.5 MILLION.

/+ME ARE