Migrant 'didn't know' about tax
By MARTY SHARPE - The Dominion Post | Thursday, 04 September 2008
A Pakistani dairy owner told Inland Revenue he had not paid nearly $200,000 in tax because "where I come from we didn't have to pay tax".
Farrukh Hashmi, 42, pleaded guilty in Napier District Court yesterday to 37 charges of failing to pay income tax and gst.
He has admitted failing to pay $195,473 on undeclared earnings of $486,797 between 2002 and last year.
After interest is calculated he will probably owe the tax department more than $300,000.
Hashmi, who has partially completed an MBA through Massey University, told The Dominion Post he was unaware he had to pay tax.
Pakistan had a tax system, but "hardly anyone pays it".
"I worked there but I never paid taxes."
Trade and Enterprise New Zealand said Pakistan's personal income tax rate ranges from 10 to 35 per cent, with corporate tax assessed at 35 per cent.
Hashmi, his wife and their daughter moved to New Zealand from Karachi 12 years ago and have run the Carlyle Street Store in Napier for four years.
He had previously worked for Mohammad Farooqi at the Bryant Park Foodmarket in Hamilton.
An audit of his business was ordered by the tax commissioner last year after Farooqi was jailed for two years for tax evasion. Farooqi claimed Hashmi had misappropriated $170,000.
No charges were laid, but the department found Hashmi had "in all likelihood" taken cash from the Bryant Park store and his own store.
Large sums of unexplained cash were found to have been used by Hashmi to buy three rental properties in Napier, now in a family trust's name.
Hashmi, who has no previous convictions, was interviewed by the department in January.
He told investigators he was not aware of his responsibilities, adding that "where I come from we didn't have to pay tax". He was remorseful and intended repaying all the debt after selling the rental properties. He had hoped his assurance to do so would have meant the charges could have been avoided.
"This was a mistake, an honest mistake. I will pay for my mistake," he said.
He and his wife worked seven days a week in the dairy and a jail sentence would mean having to sell it.
Hashmi disputed the amount he had earned. "Ask any dairy owner if I can make that much money ... It's not possible."
He was ordered to surrender his passport and was remanded on bail till December 5.
By MARTY SHARPE - The Dominion Post | Thursday, 04 September 2008
A Pakistani dairy owner told Inland Revenue he had not paid nearly $200,000 in tax because "where I come from we didn't have to pay tax".
Farrukh Hashmi, 42, pleaded guilty in Napier District Court yesterday to 37 charges of failing to pay income tax and gst.
He has admitted failing to pay $195,473 on undeclared earnings of $486,797 between 2002 and last year.
After interest is calculated he will probably owe the tax department more than $300,000.
Hashmi, who has partially completed an MBA through Massey University, told The Dominion Post he was unaware he had to pay tax.
Pakistan had a tax system, but "hardly anyone pays it".
"I worked there but I never paid taxes."
Trade and Enterprise New Zealand said Pakistan's personal income tax rate ranges from 10 to 35 per cent, with corporate tax assessed at 35 per cent.
Hashmi, his wife and their daughter moved to New Zealand from Karachi 12 years ago and have run the Carlyle Street Store in Napier for four years.
He had previously worked for Mohammad Farooqi at the Bryant Park Foodmarket in Hamilton.
An audit of his business was ordered by the tax commissioner last year after Farooqi was jailed for two years for tax evasion. Farooqi claimed Hashmi had misappropriated $170,000.
No charges were laid, but the department found Hashmi had "in all likelihood" taken cash from the Bryant Park store and his own store.
Large sums of unexplained cash were found to have been used by Hashmi to buy three rental properties in Napier, now in a family trust's name.
Hashmi, who has no previous convictions, was interviewed by the department in January.
He told investigators he was not aware of his responsibilities, adding that "where I come from we didn't have to pay tax". He was remorseful and intended repaying all the debt after selling the rental properties. He had hoped his assurance to do so would have meant the charges could have been avoided.
"This was a mistake, an honest mistake. I will pay for my mistake," he said.
He and his wife worked seven days a week in the dairy and a jail sentence would mean having to sell it.
Hashmi disputed the amount he had earned. "Ask any dairy owner if I can make that much money ... It's not possible."
He was ordered to surrender his passport and was remanded on bail till December 5.
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