A High Court judge has ruled against Securitibank founder
John George Russell, saying he must pay the IRD $138.8
million in back taxes, interest and penalties.
Russell, a chartered accountant, last year appealed a
decision by the Taxation Review Authority relating to
assessments the IRD had made against his income.
Russell maintained his income during the period was just
$298,700 but the IRD assessed his income, without tax dodge
arrangements, between 1985 and 2000, was $15.75m.
In his just-released decision, Justice Ed Wylie said the
facts of the case were of "labyrinthine complexity" which
involved a myriad companies, partnerships and trusts,
BusinessDay reported.
"The arrangement was in my view so tortuous that it is hard
to escape the conclusion that it was put in place simply to
obfuscate the situation and to confuse even the most diligent
tax inspector," Justice Wylie said.
The IRD argued the overall arrangement, which included
loss-making companies, was designed by Russell to avoid him
having to pay tax in his personal capacity.
Accruing penalties and interest brought the bill to $138.8m.
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