The Wickenby deterrence

7 March 2012

Media release 2012/02

Two recent Project Wickenby-related court cases have reinforced community expectations that serious tax fraud should be treated sternly and appropriately, Tax Commissioner Michael D'Ascenzo said today.

"Two appeal cases last week in the NSW Court of Criminal Appeal have resulted in successful outcomes for Project Wickenby, with even tougher sentences imposed and reaffirming the seriousness of tax fraud and evasion," Mr D'Ascenzo said.

On Monday Michael Boughen, and Wayne Francis Cameron, were sentenced by the NSW Court of Criminal Appeal to 3 years imprisonment to be released after they have served 18 months and upon meeting certain conditions. This overturns the sentences imposed by Justice Finnane which were considered 'manifestly inadequate' and therefore the orders that the sentences be served by way of Intensive Correction Orders were in turn 'erroneous'. Boughen and Cameron pleaded guilty to conspiracy to defraud the Commonwealth and conspiracy to dishonestly cause a loss to the Commonwealth.

"The NSW Court of Criminal appeal outlined that the consequences of tax fraud should align to the consequences of social security fraud," Mr D'Ascenzo said.

The Court said that 'to fail to sentence middle class offenders commensurately with social security offenders risks bringing the administration of justice into disrepute as perpetrating class bias'.

Also, on Friday, the appeal against conviction and sentence of Michael Milne was dismissed, confirming his sentence of 8½ years imprisonment to serve 4 years and 9 months. Milne was found guilty in November 2010 of dishonestly obtaining a gain from a Commonwealth entity and money laundering.

"The NSW Court of Criminal Appeal confirmed that imposing 'firm custodial sentences' in instances of white collar crime was required to ensure an offender would not offend again, and to act as an important deterrent to others," Mr D'Ascenzo said.

"The Court also reinforced the strong community expectation that serious tax fraud will be properly punished and offenders should be dealt with sternly and appropriately."

Project Wickenby

Project Wickenby is a cooperative partnership between the ATO, Australian Federal Police, Australian Crime Commission, Australian Securities and Investments Commission and the Commonwealth Director of Public Prosecutions, with support from the Australian Transaction Reports and Analysis Centre, the Australian Government Solicitor and the Attorney-General's Department.

As at 31 January 2012 the Project Wickenby taskforce has resulted in:

• $1,261 million in tax liabilities raised
• $287.44 million in tax collected
• 65 people charged with serious offences
• 22 people convicted of serious offences
• 12 criminal investigations currently in progress
• $105.25 million in assets restrained, and
• $307.6 million gathered in improved voluntary compliance.