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

Publisher
Australian Taxation Office
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.

Related countermeasures

Make sure to confirm the identity (an attribute or set of attributes that uniquely describe a subject within a given context) of the person making the request or claim using evidence.

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 to make sure that two sets of records (usually the balances of two 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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