Tax Cheat Used Two Names For GST Fraud

November 27, 2010 New Zealand Taxation

Cellblock DoorThe Inland Revenue Department has revealed that a Hamilton man has been sentenced for GST fraud that was committed through the use of a new identity.

On November 24th Andrew Skipper Kendell was sentenced to two years and ten months jail-time for four charges of GST fraud. The defendant was alleged to have used an invalid identity to obtain NZD 153 000 in GST refunds.

According to the Inland Revenue Department (IRD) Andrew Skipper Kendell was originally named Andrew John Munsor Caddy. He legally changed his name following two bankruptcies and a tax fraud investigation by the IRD. In 2006 Andrew Skipper Kendell registered eight companies using his old name and filed 41 GST returns.

An IRD audit into the accounts of the eight companies revealed no discernible incomes or evidence of the validity of any expenses cited in the GST claims. However, evidence was discovered of Andrew Skipper Kendell using the shell companies to claim his personal expenses as business related.

Jonathan Matthews, IRD Assurance Manager, stated that this was not the first time that Andrew Skipper Kendell has attempted to use a similar method to make fraudulent gains from GST claims. He commented further, saying “The sentence shows how seriously the courts view this sort of premeditated offending. Our tax system relies on the honesty of taxpayers, and when someone claims money they are not entitled to they’re taking money from services like schools and hospitals.”

Photo by C. Young Photography