Tax agent and client hit with 5-year sentences for ‘cheating tax system’
A former tax agent and client have been sentenced to a combined 10 years and six months’ imprisonment for refund fraud and avoidance of income tax.
Banned tax agent Ravindra Narayan and business owner Duane Saltmer have been found guilty under section 134.2 of the Criminal Code and will serve a combined 10 years and six months in jail.
It was found the pair dishonestly gained a financial advantage of over $4 million through fraudulently claiming tax refunds and intentionally avoiding paying income tax.
Narayan was sentenced to five years and six months’ imprisonment with a non-parole period of two years and nine months.
Saltmer was sentenced to five years’ imprisonment with a non-parole period of two years and six months.
Assistant Commissioner Jade Hawkins welcomed the court’s decision.
“People who deliberately cheat the tax system can expect to face serious penalties, including jail times,” she said.
“We are committed to keeping the system fair and holding to account those who choose to challenge it.”
During the investigation, it was found the pair submitted false business activity statements claiming GST refunds for companies operated by Saltmer that they were not entitled to between 2012 and 2015.
Narayan and Saltmer also claimed false deductions for Saltmer’s companies and evaded income tax by intentionally overlooking assessable income in Saltmer’s personal income tax return.
Narayan was also charged with evading tax income by purposefully overlooking assessable income in his personal income tax return.
Hawkins said the pair have dishonestly taken advantage of the Australian tax system through their actions.
“Schemes such as this undermine the integrity of the tax profession and give businesses an illegal unfair advantage over those in the community who are doing the right thing,” Hawkins said.
The pair’s illegal actions were brought to light after the ATO audited the tax affairs of Saltmer’s companies in 2015.
During the audit, it was discovered both Narayan and Saltmer were operating a false invoice scheme to “defraud the Commonwealth.”
Narayan’s illegal actions were uncovered during an additional audit into Saltmer’s tax affairs.
Through the audit into the individual tax affairs of Saltmer, it was found Narayan in his capacity as an accountant and tax agent had lodged income tax returns listing false amounts on behalf of Saltmer.
The matter was prosecuted by the Office of the Director of Public Prosecutions after being given a referral from the ATO.
Hawkins said illegal actions like this also cause negative impacts to the rest of the Australian community.
“It also has broader impacts on our community by reducing funds for essential services such as health, education, transport and infrastructure.”
