Anthony Castagna and Robert Agius, both from NSW, have been sentenced to seven years in prison, after an investigation by the Serious and Financial Crimes Taskforce.
Mr Castagna didn’t declare approximately $5.7 million of income and bonuses, according to a statement from the federal government.
Further, the pair used an offshore company, owned by Mr Agius, to hold funds before using sham loans to return the money to Australia without paying tax.
The men have since been charged with conspiracy to defraud the Commonwealth, conspiracy to cause a loss to the Commonwealth, and conspiracy to deal with the property of a value greater than $1 million believing it to be proceeds of crime.
The convictions stems from an initial investigation in 2006, where the ATO and Australian Federal Police captured a Vanuatu-based money laundering and tax evasion scheme.
Both Minister for Revenue and Financial Services Kelly O’Dwyer and Minister for Law Enforcement and Cyber Security Angus Taylor condemned the two NSW men.
"Money laundering and tax evasion have serious repercussions on the Australian economy and we are committed to dismantling these schemes and ensuring those responsible have their day in court," said Mr Taylor in a statement.
Government agencies involved in the Serious and Financial Crimes Taskforce include the ATO, Australian Federal Police, Commonwealth Director of Public Prosecutions, Australian Criminal Intelligence Commission, Attorney-General's Department, Australian Transaction Reports and Analysis Centre, ASIC and Australian Border Force.