The Court: County Court of Victoria
The Lawyer: Kieran Burke
The Charges:
The Allegations:
In 2018, a truck driver (our client) from Frankston, who operated his own business, set up a company and family trust. Between 2018 and 2023, the truck driver lodged 18 Business Activity Statements (BAS) fraudulently claiming refunds for fuel purchased by the company. The Australian Tax Office (ATO) paid a total of $5.85 million into the family trust.
The client created and supplied falsified invoices to substantiate the claimed refunds to the ATO, which conducted regular reviews of the refunds claimed by the client.
In 2023, an ATO auditor was appointed and contacted the client, who claimed that:
- The business owned and operated 100 to 200 trucks.
- Tax credits were claimed for diesel used in these trucks.
- The fuel was purchased in bulk.
- The fuel was stored in large tanks at the business premises.
These, however, were all false statements. The auditor commenced an investigation into the client’s business and dealings. It was uncovered that the client only owned and operated one truck and a trailer purchased through finance.
The Commonwealth Director of Public Prosecutions proceeded with two charges of Obtaining Financial Advantage by Deception. This offence is a Commonwealth offence, meaning it is governed by the Criminal Code Act 1995 (Cth). The maximum penalty is 10 years’ imprisonment.
At Court:
The accused in this matter suffered from personal and financial stressors at the time, including pressure to provide financial support to a number of family members who were relying on his income. As the sole income earner, economic pressures to provide for his wife, his step-daughter and her two children, who resided with the client and his wife, his elderly in-laws, and his unwell sister, who lived in New Zealand. He had also been experiencing personal stressors, including estrangement from his biological children as a result of the breakdown of his previous two marriages, issues surrounding his difficult childhood as an adopted child, and his various health problems, which included morbid obesity, severe depression, high blood pressure, high cholesterol and diabetes.
Our solicitor referred the client to a forensic psychologist to obtain a report. Our solicitor submitted to the court that the client entered a guilty plea early in the proceedings and was remorseful for the offences. The client demonstrated contrition by voluntarily placing his company into liquidation to recoup the loss to the Commonwealth, releasing approximately $2 million in liquidated assets. The forensic psychologist’s report was tendered along with other supporting material.
The Outcome:
Following lengthy submissions by our solicitor, the County Court Judge considered the above factors and imposed a sentence of eight years’ imprisonment, with release on a recognisance release order after five years, if the client demonstrated good behaviour for the first three years.
