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  • Tax crime investigation results

    People who commit fraud and evade their tax obligations are stealing from the Australian community and placing an unfair burden on those doing the right thing.

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    Summary prosecutions

    Under the Tax Administration Act 1953, we prosecute a range of summary offences, including:

    • failing to lodge returns or keep records
    • making false or misleading statements
    • not responding to our questions when required
    • failing to attend an interview.

    Last year we prosecuted more than 2,000 cases, resulting in 1,880 criminal convictions and fines of $13.748 million.

    Summary prosecutions

    Year

    Cases

    Convictions

    Dismissals & withdrawals

    Fines ($m)

    2017–18

    2,035

    1,880

    155

    13.748

    2016–17

    2,190

    1,952

    92

    14.91

    2015–16

    2,060

    1,780

    86

    11.24

    2014–15

    1,614

    1,540

    74

    9.59

    2013–14

    1,773

    1,540

    233

    13.02

    2012–13

    1,944

    1,691

    253

    7.38

    2011–12

    2,146

    1,961

    185

    7.41

    Tax crime investigation results

    We investigate more serious tax-related fraud offences, sometimes in partnership with the Australian Federal Police. Where the evidence warrants it, we refer cases to the Commonwealth Director of Public Prosecutions to consider prosecution.

    Below is a summary of tax crime investigations for the period of July to December 2018.

    Tax crime investigation results – July to December 2018

    Result

    Details

    24 months jail with non-parole period of 12 months

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

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

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

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

    Thompson, from Queensland, 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 defendant's 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.

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

    Akel, from Victoria, 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.

    Six months suspended jail term

    Mavrikis, from 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.

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

    Harrison, Victorian 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. The Judge granted a reparation order of $884,496.02 in favour of the Commissioner of Taxation.

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

    Lee, from Queensland, 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 have been served. The Judge granted a reparation order of $820,241.

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

    Kabir, a former tax agent from Queensland, 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 our previous online lodgment system, E-tax. Kabir then modified the bank account details to divert refunds into bank accounts he controlled.

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

    Hughes, from Queensland, 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. The Court issued a reparation order of $44,471.41.

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

    Chan, from New South Wales, was found guilty of lodging false business activity statements for three entities associated with him, and claiming GST refunds he was not entitled to. The Court issued a reparation order of $285,568.

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

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

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

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

    12 months jail released forthwith

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

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

    Tilley, 67, from Runcorn in Queensland, 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.

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

    West Australian man 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 us. Parsons was convicted of eleven charges and the Court issued a reparation order of $517,741.

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

    Chan, 42, from Galston in New South Wales, 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 the Court issued a reparation order of $285,568.97.

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

    Northern Territory man, Mortensen, claimed work related expenses that he was not entitled to in his 2014–15 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.

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    Serious tax-related fraud offences

    Our most serious tax crime matters are dealt with by the cross-agency Serious Financial Crime Taskforce.

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    Last modified: 29 Apr 2019QC 50783