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  • Latest tax crime investigation results

    There are people who are calculated in their attempts to deliberately commit fraud and evade their tax obligations, ultimately stealing from the Australian community and placing an unfair burden on others who are doing the right thing.

    The ATO, along with our partner agencies, access various information sources and use sophisticated analytics, to identify people who deliberately break the law to either:

    • avoid paying the right amount of tax
    • claim refunds or other payments they are not entitled to.

    Below is a summary of serious tax crime investigations for the period of July to December 2018. These are the result of the combined efforts by the ATO and our partner agencies who, with community support, keep our tax and superannuation systems fair.

    Tax crime investigations – July to December 2018

    Result

    Details

    State

    24 months jail with non-parole period of 12 months

    Schneider, 62, from Hampton VIC, was found guilty of receiving GST refunds for his company, to which he was not entitled. A reparation order of $150,000 was imposed by the Judge.

    VIC

    Three years jail with non-parole period of two years, three months

    Kamarelddin, 43, from Hoppers Crossing VIC, was found guilty in August 2018 and sentenced to jail for his role in an illicit tobacco syndicate.

    VIC

    30 months jail with a non-parole period of eight months

    Thompson was found guilty and convicted on 84 counts of lodging business activity statements where the entity was not carrying on an enterprise. Her Honour took into account the facts and the defendants' plea of guilty, noting that in her view there was no remorse and this was a serious example of tax fraud. Thompson's total effective sentence was two years and six months imprisonment. To be released after serving eight months on a good behaviour bond of two years; recognisance $500.

    QLD

    Six months jail and released on a good behaviour bond for 12 months

    Akel was convicted and sentenced to six months jail due to his involvement in an illicit tobacco syndicate. Akel was released on a good behaviour bond for six months and upon recognisance of $1,000.

    VIC

    Six months suspended jail term

    Mavrikis, of Victoria, was found guilty of possession of 300kg of tobacco (five bales of tobacco leaf) and received a six months suspended jail sentence. Approximate excise value $345,000.

    VIC

    50 months jail with a non-parole period of 30 months

    Harrison, as director of a transport company, was found guilty of lodging false business activity statements and sentenced to four years imprisonment on the charge of financial gain and two months on the charge of attempt to gain. A reparation order of $884,496.02 was granted by the Judge in favour of the Commissioner of Taxation.

    VIC

    Six years jail with a non-parole period of two years nine months

    Lee was found guilty and sentenced to six years imprisonment for lodging false business activity statements for two companies; receiving GST refunds he was not entitled to. He will be eligible for parole after two years nine months has been served. A reparation order of $820,241 was granted by the Judge.

    QLD

    Five years jail with a non-parole period of three years

    Kabir, a former tax agent, was found guilty of using client information to lodge tax returns. Kabir accessed the tax agent portal and used client information to lodge tax returns within the ATO's previous online lodgment system, E-tax. Kabir then modified the bank account details to divert refunds into bank accounts he controlled.

    QLD

    20 months jail with a non-parole period of two months; to be released on a two year good behaviour bond

    Hughes was found guilty of lodging false business activity statements and claiming GST refunds she was not entitled to as she was not operating a business. A reparation order of $44,471 41 was issued by the Courts.

    QLD

    Three years jail with a non-parole period of 18 months

    Chan was found guilty of lodging false business activity statements for three entities associated with him, and claiming GST refunds he was not entitled to. A reparation order of $285,568 was issued by the court.

    NSW

    64 months jail with a non-parole period of 40 months

    Cho, director/manager of four labour hire firms, was found guilty of fraudulently obtaining more than $890,000 through illegal phoenix activity. Cho was convicted on 20 counts. A reparation order of $890,112 was issued by the Court.

    WA

    Three years jail with a non-parole period of two years

    King, the director of Pacific 1 Pty Ltd, falsified business activity statements to receive GST refunds that he was not entitled to.

    NSW

    12 months jail released forthwith

    Sarkis, a director of G.S.W. Pty Ltd (GSW), developed 24 units on a property in Camperdown, NSW. The units were sold for a total of $11,445,000 (incl. GST), but the sales were not reported in the business activity statement lodged on behalf of GSW.

    NSW

    Two year good behaviour bond with a recognisance of $2,000

    Tilley, 67, from Runcorn, QLD, was the director of First State Properties QLD No. 5 Pty Ltd. He lodged false business activity statements, understating sales and causing a shortfall of GST payable.

    QLD

    Five years jail with a non-parole period of 30 months

    Parsons, while living in New York, advertised in the US media for investors in his hedge fund. He assisted investors in obtaining ABN and GST registration and provided figures for them to complete their business activity statements. Unbeknown to the US investors, these figures were false and the scheme was defrauding the ATO. Parsons was convicted of eleven charges and a reparation order of $517,741 was issued by the courts.

    WA

    Three years jail with a non-parole period of 18 months

    Chan, 42, from Galston, NSW, was the director of several companies in the computer and design industry. He lodged false business activity statements to obtain refunds he was not entitled to. Chan was convicted of three charges and a reparation order of $285,568.97 was issued by the courts.

    NSW

    Three month suspended jail sentence, 12 month good behaviour bond with a recognisance of $5,000 and $2,700 fine

    Mortensen claimed work related expenses that he was not entitled to in his 2014-15 Income tax return, which resulted in a tax shortfall of $2,306. During the audit process, Mortensen provided an ATO officer with a fabricated document in an attempt to substantiate his false claims. He was convicted of two charges.

    NT

    See also:

    Last modified: 25 Feb 2019QC 50783