A South Australian restaurant owner has been sentenced to five years and three months in jail after being found guilty of fraudulently obtaining $613,262 in GST refunds.
Brad Redman, who owned and operated a restaurant in McLaren Vale, submitted 14 false BAS and five false revised BAS overstating the business’ total sales, export sales, GST-free sales and acquisitions.
Mr Redman was stopped by the ATO when attempting to obtain an additional $210,333 in GST refunds on top of the $613,262 and was prosecuted by the Commonwealth Director of Public Prosecutions.
During sentencing in the Adelaide District Court, Judge Kudelka said that Mr Redman failed to understand the wider impact of his actions.
“I do not think you grasp the intensity of feeling from hardworking people in the community who have honestly paid their tax who find out that someone such as you has helped themselves to the revenue and spent almost $600,000,” she said.
The Tax Office has been cracking down on GST fraud as part of Operation Protego and said the sentence was a cautionary tale for others trying to cheat the system.
“When you claim a refund that you’re not entitled to, you’re stealing from the community and disadvantaging everyone who does the right thing,” said ATO Assistant Commissioner Jade Hawkins.
“We take this sort of behaviour very seriously — it’s not fair and it’s not ok.
“As this matter demonstrates, people who deliberately cheat the tax system can expect to face serious penalties, including jail time.”
On top of the submission of false BAS to the ATO, Mr Redman was also found to have supplied an ATO auditor with a forged medical document that stated his wife was receiving treatment for cancer.
Mr Redman forged the document as his wife was listed as the director of the business and the ATO was trying to contact her.
In an email to the auditor where he sent the forged medical document Mr Redman said: “My wife is not up to doing it herself as she is in enormous pain at the moment and has no concentration to do so.
“We are hoping this information is sufficient as we are counting on this refund to help us fund her next round of extensive treatment. I hope you keep this in mind. Once again I appreciate your compassion in our solution.”
This action meant Mr Redman was also charged with one count of using a forged document to influence a Commonwealth official.
He will be eligible for parole after serving three years in jail.
Mr Redman’s sentencing comes after a Queensland woman was sentenced to five years in jail in August for attempting to fraudulently obtain more than $650,000 in GST refunds.
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