Two men jailed for Australia’s largest ever prosecuted tax fraud

Publisher
CDPP
Date published
March 2018

Relevant impacts: Financial impact, reputational impact, business impact and industry impact

Two men from NSW deliberately absorbed $450 million of otherwise assessable income through falsely created losses overseas to evade $135 million in corporate tax. The pair created a web of false identities to aid their deception and siphoned money through the UK, Hong Kong and the UAE via fake domestic and international companies to fund their lavish lifestyles. This approach resulted in $63 million in fraudulent gains. The scheme was described as incredibly complex and one of the largest tax fraud schemes detected in Australia.

One man was sentenced to 10 years and 3 months in prison and the other man was sentenced to 14 years in prison. This is the longest ever jail time for tax fraud and money laundering in Australia. The Australian Federal Police seized $54 million in assets including real estate, luxury cars and yachts.

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Related fraudster personas

The Fabricator

The Fabricator invents or produces something that is false to dishonestly gain personal benefits.

The Organised

The Organised are groups which use a combination of methods in planned, coordinated and sophisticated ways to dishonestly gain benefits.

The Concealer

The Concealer hides their actions from being seen or known about to dishonestly gain personal benefits.

The Impersonator

The Impersonator pretends they are another person or entity to dishonestly gain personal benefits.

Related countermeasures

Data analysis

Analyse data to improve processes and controls, increase payment accuracy and find and prevent non-compliance, fraud and corruption.

Confirm identity

Confirm the identity or attribute of the individual. Evidence of identity should be collected and verified using policies, rules, processes and systems to make sure only known, authorised identities can gain access to information stored in networks and systems.

Verify information

Verify any requests or claim information you receive with an independent and credible source.

Collaborate with strategic partners

Collaborate with strategic partners such as other government entities, committees, working groups and taskforces. This allows you to share capability, information and intelligence and to prevent and disrupt fraud.

Reconcile records

Reconcile records to make sure that 2 sets of records (usually the balances of 2 accounts) match. Reconciling records and accounts can detect if something is different from what is standard, normal, or expected, which may indicate fraud.

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