Mawer Money with Greg Mawer: Jail Sentence for Fraudulent Developer.
- Jo Eaton
- Mar 25, 2024
- 1 min read
A developer who conspired to lodge fraudulent business activity statements has been convicted and sentenced to 10 years in jail with a non-parole period of six years and eight months.
The developer was involved with two companies that formed part of a group known as the 'Hightrade Group' which developed properties such as a hotel and golf course in the Hunter Valley, NSW.
The developer fraudulently obtained GST refunds by using three tiers of companies (developers, building companies and suppliers) to grossly inflate the construction costs of his developments.
The companies he was involved with also claimed to have purchased goods when no such purchases had occurred. In total, the developer intended to cause a loss to the Commonwealth of more than $15 million.
His sentencing has closed a complex case, known as Operation 4. The ATO noted that "Tax crime, like the fraud uncovered in Operation 4, affects the whole community."
‘This was not an ordinary business operating legitimately – it was deliberate and evasive behaviour. The Developer undermined genuine businesses by not paying his external suppliers, and left business creditors and employees without their entitlements.’
‘Tax crime also reduces the amount of revenue available to fund essential community services, like health and education,’ the ATO commented.
The ATO take all reports of tax crime seriously. If you have any information to share, you can do so confidentially at www.ato.gov.au/tipoff or by phoning 1800 060 062.
Accumulate Accountants + Business Advisors is a consulting firm located in Perth, Western Australia that provides a range of successful businesses with strategic business advice, accounting and taxation services.
Contact: Greg Mawer
(08) 9364 4204
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