Past tax crime prosecution case studies
Omitted income lands former tax agent in trouble
A former tax agent who made false statements in a business activity statement (BAS) and tax return has been sentenced to 20 months imprisonment. He was released immediately on entering into a $10,000 recognisance to be of good behaviour for 2 years.
Mr Ilias Temblalexis was a registered tax agent practicing as a sole trader under the name H&I Financial. He had more than 2,500 clients.
When we audited the business in 2018, we found Mr Temblalexis had drastically understated his income and GST on sales.
Our audit found the business’s 2017 tax return understated his income by $386,973, resulting in a tax shortfall of $194,603.79.
We also discovered Mr Temblalexis only began reporting GST on his BAS from 1 July 2017, even though his business income had exceeded the reporting threshold a year earlier.
Further investigation found one of the BAS he’d lodged understated the amount of GST on sales by $71,666.
Shadow economy activities like these are not victimless crimes. Not reporting or under-reporting income has broader impacts on our community, by reducing funds for essential services such as health, education and transport. It also makes it harder for honest businesses when others deliberately do the wrong thing to gain an unfair advantage.
In December 2019, the Tax Practitioners Board deregistered Mr Temblalexis as a tax agent for breaching the Tax Agent Service Act 2009.
Restaurateur served with jail term
A McLaren Vale restaurateur has been sentenced to 5 years and 3 months imprisonment after being found guilty of fraudulently obtaining $613,262 in GST refunds and attempting to obtain a further $210,333 that was stopped by the ATO.
Between September 2016 and November 2017, Mr Brad Redman submitted 19 false business activity statements (BAS), which considerably overstated the total sales and acquisitions of The Artel, the restaurant and gift shop business that he operated with his wife.
Several documents provided by Mr Redman throughout the audit contained inconsistencies, including:
- a sales summary from a point-of-sale (POS) system that was created in Microsoft Word
- a POS report claiming to cover the dates of 1 June to 31 June, despite there only being 30 days in June.
During our audit Mr Redman also supplied a forged medical document advising his wife was receiving treatment for cancer. We later checked with the doctor listed on the document, who confirmed she didn’t write the letter and wasn’t treating anyone by that name.
In sentencing, the magistrate described Mr Redman’s offending as persistent and deliberate, and that his false claims about his wife’s health were despicable. Mr Redman was sentenced to 5 years, 3 months and 2 days imprisonment, with a non-parole period of 3 years. He has also been ordered to pay $599,122 in reparations.
Shadow economy activities like evading tax obligations and claiming more than what you’re entitled to are not victimless crimes. They make it harder for honest businesses to compete and impact on our community by reducing funds for essential services such as health, education, transport and infrastructure.
5 years jail for serial GST fraudster
A Queensland woman has been sentenced to 5 years imprisonment, with a non-parole period of 20 months, for attempting to fraudulently obtain more than $650,000 in GST refunds, as well as other offences.
Ms Amanda Burman used ABNs that weren’t linked to active businesses to submit a series of false claims for GST input tax credits.
While some of Ms Burman’s earlier claims were paid, ATO audits found Ms Burman could supply no evidence to prove she was running a business. As a result, we advised Ms Burman that her claims were disallowed, and that her GST registration was cancelled.
Despite this Ms Burman repeatedly reactivated her GST registration and continued to make a series of fictitious claims. On each occasion, our checks confirmed Ms Burman couldn't provide any supporting documentation that she was actually running a business, and each time her claim was disallowed.
In total, Ms Burman obtained a financial benefit of over $150,000 and attempted to claim a further $500,000.
Evading tax obligations, or trying to get more than you’re entitled to, is a crime.
When you claim a refund, you’re not entitled to, you’re stealing from the community and disadvantaging everyone who does the right thing. It’s not fair and it’s not ok.
Property owner digs himself into a hole
South Australian man David Csongrady has received a criminal conviction and been fined $1,500, with orders to pay $699.30 in reparation, after providing false documents to an ATO auditor about deductions for his rental property.
We started an audit into Mr Csongrady’s 2018 tax return after noticing deductions for gardening repairs and maintenance for his rental property were unusually high. When we asked him to supply details about the expenses, Mr Csongrady provided us with photos of some tax invoices relating to hire of a skip bin and the removal of some dead trees.
But when we contacted the business that provided these services to check, we found some discrepancies.
The original tax invoice showed Mr Csongrady hired the skip for $210, but the record he supplied to us showed $1,090. And an additional $1,000 had also been added to the invoice for tree removal.
Following an investigation, Mr Csongrady was charged with 2 counts of incorrectly keeping records with the intention of deceiving or misleading a Commonwealth public official.
Receiving a criminal conviction is serious. It can have a significant impact on your reputation, career prospects and ability to travel overseas, as well as make it harder to borrow money or obtain insurance. It’s not something you can just sweep under the carpet. We know and trust that most people do the right thing. But when we see attempts to cheat the system, we take firm action.
False claims land swimming teacher in hot water
A former swimming teacher has been sentenced to 3 years jail for obtaining and attempting to obtain more than $250,000 in fraudulent GST refunds.
Ms Sasha Cordes lodged several original and amended business activity statements for her swim school business. In each case, she knowingly overstated the purchase amounts to obtain a financial advantage.
In total, $97,114 worth of fraudulent GST refunds were paid into her back account. She also tried to obtain an extra $181,947, but we stopped these refunds.
Ms Cordes will be released from jail after 15 months, on entering into a $1,000 recognisance on the requirement that she be of good behaviour for 2 years. She was also ordered to repay the full $97,114.
In sentencing, His Honour noted that the offending involved both deception and dishonesty and had been committed over an extended period.
As this case highlights, people who deliberately cheat the tax system will be caught and held to account.
You can:
- phone 1800 060 062 to anonymously report tax evasion and shadow economy behaviour to us
- read about more recent Tax crime prosecution case studies.
Past Operation Protego case studies
Thitikorn Thanawong sentenced to 2 years and 8 months jail
Thitikorn Thanawong recklessly dealt with $296,212 that was the proceeds of indictable crime. She spent the entire amount on holiday expenses, transfers to associates and luxury retail purchases.
She was sentenced to 2 years and 8 months in jail, to be released on a recognisance release order after serving 10 months, upon entering recognisance of $2,000 and to be of good behaviour for 2 years.
For more information, see Luxury spender jailed through Operation Protego.
Craig Hamilton sentenced to 2 months and 2 weeks jail
Craig Hamilton was sentenced to 2 months and 2 weeks jail, released immediately on a security of $500 and to be of good behaviour for 2 years for dealing with the proceeds of indictable crime. Mr Hamilton obtained and dealt with $80,000 of fraudulent funds.
Mr Hamilton reactivated a past Australian business number (ABN) operating as a construction project manager. In February 2022, 4 business activity statements (BAS) were lodged for the business and he claimed GST refunds that he was not entitled to.
During the audit process, several red flags were identified:
- No website or social media presence existed for the business.
- Reported expenses exceeded his actual earnings.
- Identical expense amounts were reported every quarter.
- 80% of his income came from government benefits.
Mr Hamilton’s bank records also didn’t indicate any business expenses or wages being paid. Instead, his expenses were largely spent on fines and fees, takeout, and supermarket purchases.
Of the $80,000 obtained, $72,905 was recovered from the bank after Mr Hamilton’s account was frozen. This left a balance of $7,094 which he was ordered to repay.
Tahra Wyntjes sentenced to 4 years jail
Tahra Wyntjes was sentenced to 4 years jail with a non-parole period of 2 years and 4 months. She was charged with one count of obtaining a financial advantage by deception and one count of attempting to obtain a financial advantage by deception.
Ms Wyntjes obtained $599,349 in fraudulent GST refunds she was not entitled to and attempted to obtain a further $259,976, which was stopped by ATO officers.
Ms Wyntjes registered for both an Australian business number (ABN) and for GST in November 2021 for a residential cleaning business. Between November 2021 and March 2022, she lodged fraudulent business activity statements (BAS), which ATO officers quickly noticed and began investigating.
Ms Wyntjes was ordered to repay $599,349 by the court.
For more information, see Victorian woman sentenced over GST fraud.
Aman Akol sentenced to 6 months jail
Aman Akol was sentenced to 6 months jail, released on a security of $1,000 and good behaviour for one year. She was charged with one offence of obtaining a financial advantage by deception, and one offence of attempting to obtain a financial advantage by deception.
Between 20 October 2021 and 2 March 2022, Ms Akol conspired with an online associate to dishonestly lodge 7 business activity statements (BAS) for a cleaning business that did not exist. These lodgments resulted in Ms Akol fraudulently obtaining $85,759 in GST refunds she was not entitled to and attempting to obtain a further $27,960.
Aman Akol is the sister of Arec Akol who was charged and sentenced with similar offences in January 2024.
Lee Sheridan sentenced to 2 years jail
On 6 September 2024, Lee Sheridan was sentenced to 2 years in jail, to be released after having served 6 months, for dealing with the proceeds of crime (GST fraud).
Mr Sheridan received and spent fraudulent GST refunds totalling $377,820 after he provided his personal details to an individual who lodged 38 original and revised monthly business activity statements (BAS) on his behalf.
For more information, see Operation Protego holds Perth offender to account.
Joshua Mitchell sentenced to 18 months in jail
On 31 May 2024, 33 year-old Joshua Mitchell was sentenced to 18 months imprisonment, partially suspended with a $2,000 recognisance, under supervision and good behaviour. Mr Mitchell was also ordered to pay reparation of $24,200.
Between 11 March 2022 and 2 April 2022, Mr Mitchell dishonestly lodged one original and one revised business activity statement (BAS), for a business that did not exist. He fraudulently obtained a total of $24,200.
During the same period, he disposed of almost all the proceeds he had fraudulently obtained through payments to associates, streaming services and restaurants.
Lisa McCormick sentenced to 2 years 6 months jail
Lisa McCormick was sentenced to 2 years and 6 months jail and ordered to repay $39,600 in fraudulent funds. After serving 12 months, she will be released on a security of $5,000 and good behaviour for 18 months.
Between 3 March 2022 and 30 April 2022, Mrs McCormick lodged 3 fraudulent business activity statements (BAS) and as a result, received a GST refund of $39,600 which she was not entitled to. She also tried to obtain a further $9,820.
While undergoing investigation, Mrs McCormick sent 8 false documents to the ATO which she was later charged over.
She was charged with 2 counts of obtaining financial advantage by deception, one count of attempt to obtain financial advantage by deception, and one count of using a false document with the intention of dishonestly inducing a Commonwealth public official.
Arec Akol sentenced to 3 months jail
Arec Akol was sentenced to 3 months jail, released on a security of $5,000 and good behaviour for a year. She was charged with one count of obtaining financial advantage by deception.
Ms Akol had registered an Australian business number (ABN) for a cleaning business which didn’t exist. Seven fraudulent business activity statements (BAS) were then lodged between 1 April 2021 and 28 February 2022.
In total, Ms Akol claimed a GST refund of $69,461 which she was not entitled to. She was ordered to repay this amount in full.
Adam Mitchell sentenced to a community corrections order of 15 months
Adam Mitchell was sentenced to a community corrections order of 15 months after being charged with one offence of dealing in money or property that was the proceeds of crime worth $10,000 or more.
Mr Mitchell had registered an Australian business number (ABN) in 2017 and registered for GST reporting on 8 April 2022. On 22 April 2022, he lodged a fraudulent business activity statement (BAS) claiming a GST refund of $18,000.
In addition to the community corrections order, Mr Mitchell was ordered to repay the Commonwealth the full amount he had fraudulently claimed.