Former financial adviser Jeffrey Conklin was last week convicted in the Sydney District Court for tax fraud offences totalling more than $700,000. He was sentenced to five years and nine months' imprisonment with a non-parole period of two-and-a-half years.
Mr Conklin used a scheme involving various offshore entities and trusts to hide his income and then attempted to conceal the return of this income to Australia. He subsequently left Australia and was arrested at the border when attempting to re-enter the country in June 2014.
Separately, former insurance company director Timothy Charles Pratten was convicted and sentenced in the NSW Supreme Court to five years’ imprisonment, with a non-parole period of two years, for failing to declare income in his income tax returns for the financial years ending 30 June 2003 to 2009.
Mr Pattern used a web of offshore entities in Vanuatu, including trusts and companies, to conceal approximately $4.552 million in income from the ATO, resulting in a tax shortfall of approximately $2.055 million. He used these funds to support a lavish lifestyle, buying multiple properties, a helicopter and luxury boat.
The Commonwealth Director of Public Prosecutions (CDPP) last week lodged an appeal with the NSW Court of Criminal Appeal in the matter of Mr Pratten, as it is of the view that the sentence imposed was manifestly inadequate for the crimes he committed.
CDPP Deputy Director Shane Kirne said abuse of the tax system through intentional and dishonest behaviour is a very serious offence, which warrants the imposition of strong penalties.
"These offenders both used calculated and deliberate tactics to attempt to evade their tax obligations," Mr Kirne said.
The two guilty convictions are successful results for the SFCT, established 1 July 2015, which focuses on serious international tax evasion as well as other criminal activities related to phoenix businesses and abusive use of trusts.
"By sharing intelligence under the taskforce, we can build a detailed understanding of the criminal activity and ensure offenders face the full force of the law," ATO Deputy Commissioner Michael Cranston said.
Agencies forming the SFCT include the Australian Federal Police, Australian Taxation Office, Australian Crime Commission, Attorney-General’s Department, Australian Transaction Reports and Analysis Centre, ASIC, Commonwealth Director of Public Prosecution and Australian Border Force.
Mr Cranston said the convictions demonstrate the value of cross-agency investigations in detecting and dealing with offenders.
"We use every resource available by working closely with partner agencies to identify and prosecute these criminals. Those who commit tax fraud are stealing from the entire community and will be brought to account for their actions," Mr Cranston said.
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day