Cafe owner receives 6-year sentence for $1m GST fraud
A South Australian man was arrested and sentenced to six years and six months behind bars after he obtained over $1 million in fraudulent GST refunds.
Cafe owner Shaun Both will serve six years and six months in prison with a non-parole period of three years and eight months after being tracked down by the ATO.
Both pleaded guilty to obtaining over $1 million in GST refunds he was not entitled to.
The ATO said in 2019 Both “fled” to Western Australia to avoid refund fraud charges in court in South Australia.
The ATO tracked Both to a roadhouse in the state’s remote north where he was employed, and was arrested by the Australian Federal Police.
Contrary to section 134.2 of the Criminal Code, Both pleaded guilty to nine counts of obtaining financial advantage by deception.
He also pleaded guilty to one count of knowingly dealing with money that is proceeds of crime contrary to section 400.4 of the Criminal Code.
The court’s decision was welcomed by assistant commissioner Jade Hawkins.
Hawkins said those who deliberately steal from the community will face consequences for their actions.
“This matter proves it doesn’t matter where you try to hide, the ATO will find you and make sure you are held accountable for your actions,” she said.
Between 3 March 2014 and 11 January 2016, Both claimed $1,001,004 in GST refunds he knew he was not entitled to.
During this period, Both was the sole owner of Metro Express Cafe and submitted nine quarterly business activity statements (BAS) which is what resulted in the obtainment of fraudulent GST refunds.
In February 2016, Both used a portion of the fraudulent GST refunds to purchase a property for $530,000 in an inner-city suburb of Adelaide.
Ten months later Both was forced into bankruptcy with his assets liquidated to repay the debts he owed the ATO.
Following a referral from the ATO, the matter was prosecuted by the Commonwealth Director of Public Prosecutions.
Hawkins said Both was aware he had no entitlement to the GST funds but claimed them anyway.
“Not only did the offender gain an unfair advantage over other businesses, he stole money that is used for essential community services such as schools, hospitals and transport,” she said.
The ATO said those who may be tempted to take part in criminal activities will be found, held accountable and prosecuted after the pursuit of outstanding debts.
