A South Australian restaurant owner has been sentenced to 5 years and 3 months in jail after being found guilty of fraudulently obtaining $613,262 in GST refunds and attempting to obtain a further $210,333 in GST refunds which were stopped by the ATO. He was also ordered to repay the amounts he fraudulently obtained.
Mr Brad Redman, who owned and operated a restaurant and gift shop in McLaren Vale with his wife, submitted 14 false business activity statements (BAS) and 5 false revised BAS, overstating the business’ total sales, export sales, GST-free sales and acquisitions.
Mr Redman was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from the ATO.
Assistant Commissioner Jade Hawkins welcomed the court’s decision, saying it reiterates the ATO’s stance on GST fraud and its commitment to maintaining the integrity of the tax system.
“When you claim a refund that you’re not entitled to, you’re stealing from the community and disadvantaging everyone who does the right thing.
“We take this sort of behaviour very seriously – it’s not fair and it’s not ok,” Ms Hawkins said.
“As this matter demonstrates, people who deliberately cheat the tax system can expect to face serious penalties, including jail time.”
During the sentencing, Her Honour Judge Kudelka commented “I do not think you grasp the intensity of feeling from hardworking people in the community who have honestly paid their tax who find out that someone such as you has helped themselves to the revenue and spent almost $600,000.”
In addition to submitting false BAS, Mr Redman also supplied an ATO auditor with a forged medical document advising his wife was receiving treatment for cancer. This was 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. For this, Mr Redman was also charged with one count of using a forged document to influence a Commonwealth official.
Mr Redman will be eligible for parole after serving 3 years in jail.
Shadow economy activities like evading tax obligations and claiming more than what you’re entitled to are not victimless crimes. They impact on our community by reducing funds for essential services such as health, education, transport and infrastructure.
We take all reports of tax crime seriously. If you have any information to share, you can contact our Tax Integrity Centre on 1800 060 062 or visit ato.gov.au/tipoff. Reports can be made anonymously.
Anyone who has engaged in GST fraud should come forward by calling 1300 130 017 rather than wait and face even tougher consequences. More information is available at ato.gov.au/GSTrefundfraud
A South Australian restaurant owner has been sentenced to jail after fraudulently obtaining GST refunds.