Mining mogul gets 7-year prison sentence for $1.13m GST fraud

“This was not an honest mistake; it was a deliberate and calculated attempt to steal from the Australian community,” Jade Hawkins, ATO assistant commissioner, said.

“People who cheat the tax system will be caught and can expect to face serious consequences, including jail time.”

The Tax Office warned that tax fraud was not a “victimless crime,” and that it drained resources from essential community services, including health care and education. It condemned Waterman’s “brazen” attempt to mislead ATO officers.

Despite warnings that his GST claims were being reviewed, the ATO said that Waterman doubled down on his claims and submitted other false documents to support them. These included a fake bank statement, a fake bank debt transaction report, fake invoices and fake spreadsheets.

The full extent of the fraud was revealed during an ATO investigation in 2021. In interviews with ATO officers, Waterman admitted to repurposing invoices, being deceptive in emails and acknowledged that his companies had not spent the amounts he claimed.

Waterman was prosecuted by the Commonwealth Office of the Director of Public Prosecutions following a referral from the ATO.

Alongside his prison sentence, he was also ordered to make reparations of $1,130,645.

The Tax Office warned prospective fraudsters that they would “face the full force of the law” if they attempted to cheat the system, adding that it remained committed to protecting the integrity of the tax system.