Queensland businessman sent to jail for tax fraud

David Irvine has been convicted of obtaining $596,736 for goods and services tax (GST) fraud and personal income tax return fraud, the ATO said.

Between January 2012 and March 2015, as the director of International Products Group (IPG), a corporate trustee for the Irvine Family Trust, Irvine lodged 39 monthly business activity statements via his registered AUSkey, resulting in the wrongful payment of $480,680 in tax refunds into his own bank account.

As the director of a wholesale distributor of wooden sticks for use in ice creams and coffee stirrers in south-east Queensland, Irvine fraudulently reported export sales to reduce the company’s GST payment obligations, which led to the company receiving illegal GST refunds, the ATO said.

Irvine made no attempt to repay the money incorrectly received and IPG was placed in voluntary liquidation on 17 June 2015.

In addition, he had declared a nil income for the 2009 to 2011 financial years in his personal income tax returns. As a director of IPG and beneficiary of Irvine Family Trust, the ATO audit showed the total assessable income should have been $387,136 with the tax payable of $116,056. 

ATO assistant commissioner Peter Vujanic said while some people viewed tax crime as victimless, this couldn’t be further from the truth.

“Contrary to popular belief, tax crime is not victimless. By deliberately defrauding the tax and super system including claiming a refund you’re not entitled to, you are stealing from the whole community and disadvantaging Australians who do the right thing," said Mr Vujanic.  

“Today’s result demonstrates the ATO’s commitment to detecting and prosecuting tax crimes and should serve as a warning to those who think they can flout the law and get away with it."