Use of Vanuatu advisers lands man in jail
|
|
A man who cycled funds through Vanuatu-based advisers has been sentenced to jail as a result of investigations undertaken by the Australian Taxation Office as part of Project Wickenby.
Small business director James O’Rourke has been sentenced to two and a half years in jail in the NSW District Court for using a scheme to avoid paying tax on his overseas income.
The charges arose from investigations by the Project Wickenby Taskforce into abusive secrecy haven arrangements.
O’Rourke used a ‘round-robin’ scheme where false invoices such as consulting fees, management fees and insurance premiums were used to overstate deductions.
Money was sent to bank accounts in New Zealand that were controlled by Vanuatu-based advisers. The same money was then returned ‘tax-free’ to his personal or company account in the form of ‘loans’.
These actions resulted in a combined company and personal tax fraud of $180,464.
The NSW District Court judge considered a five-year sentence, but reduced it after he took into account O’Rourke’s early plea and assistance with authorities.
The Tax Commissioner, Michael D’Ascenzo, welcomed the decision and reminded taxpayers to declare income from all sources when preparing tax returns — including money held overseas.
“You are responsible for your own tax affairs, and if you are caught up in these schemes you may find yourself facing heavy fines or even prosecution,” said D’Ascenzo.
This case brings the total number of criminal convictions under Project Wickenby to 11, while 57 people have been charged for serious offences so far.
O’Rourke will be eligible for parole after spending 15 months in jail.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
