Why bother prosecuting? judge asks the taxman

A judge has questioned why the Inland Revenue Department prosecuted a Napier tax consultancy for late filing of the firm's tax returns, when they had been filed, the company received credits, and the IRD suffered no loss.
The query came from Judge Bridget Mackintosh in the Napier District Court yesterday as she discharged Bay Accounting Ltd, trading as Tax Link Napier, without conviction on four charges.
IRD counsel Daniel Kerr replied only that it was an offence to file returns late, and that he had been instructed by "the informant" to prosecute. But he did not oppose the application from defence counsel Nathan Gray for the discharge, after the company pleaded guilty to the charges relating to the tax years ending in March 2003, 2004, 2005 and 2006.
Mr Kerr said that on May 1 this year, the company director was verbally warned to file the returns within a fortnight. On May 9, a letter warned that if the returns were not filed within a fortnight prosecution would take place.
Mr Gray said the director had overcome pressure on the firm's work to eventually file the returns, and there was a credit to the company for each of the years. He said a conviction could mean the firm was unable to practise.
Judge Mackintosh said the offence was "somewhat technical," there was no doubt conviction would have consequences disproportionate to the offence and discharged the company without conviction. She did, however, order the company to pay $130 court costs on each charge.