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Seven years jail time for 46 false BAS

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Seven years jail time for 46 false BAS

A Brisbane man who fraudulently lodged 46 business activity statements in a bid to obtain $1.2 million has been sentenced to seven years in jail.

Tax&Compliance Jotham Lian 22 March 2019
— 1 minute read

Stephen Mungomery has been sentenced in the Brisbane District Court to seven years jail time and ordered to pay reparations of more than $1.2 million.

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Between March 2009 and October 2012, Mr Mungomery lodged 46 BAS on behalf of his wife’s business, Gourmet Providores Pty Ltd. In each BAS lodgement, Mr Mungomery included expenses incurred by his sole trader entity Epicure Consulting and Training Solutions (Epicure).

When the ATO asked Mr Mungomery to produce the invoices to substantiate the claims, Mr Mungomery produced 24 Epicure-issued invoices with a total of $13,767,466 in sales ($1,253,511 GST inclusive).

The invoices were for a range of costs including $5 million for website development and more than $2.6 million for franchise development. These invoices accounted for 92 per cent of all expenditure, did not bear any commercial reality and were never paid.

The ATO’s investigators further discovered that the initial website developed for Gourmet Providores Pty Ltd was actually created by a different company at a cost of $7,885. Mr Mungomery’s franchise development claims were also found to be fraudulent.

ATO assistant commissioner Peter Vujanic said that it was astounding that anyone thought they could get away with such brazen fraud.

“This wasn’t an honest mistake by a small business owner trying to do the right thing — it was a calculated and deliberate attempt to commit fraud and steal money from taxpayers,” Mr Vujanic said.

“This kind of illegal behaviour takes away potential tax dollars from the Australian community which could otherwise go to essential infrastructure services such as roads, schools and hospitals.

“As this case demonstrates, if you’re caught breaking the law, we will hold you accountable, even if it means pursuing you in the criminal judicial system.”

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Seven years jail time for 46 false BAS
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Jotham Lian

Jotham Lian

Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

With a focus on breaking news and exclusive analysis, Jotham keeps Accountants Daily readers up to date with company moves, tax updates and essential business and client strategy. 

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

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