Queenslander sentenced to 7 years’ jail after cooking the books for wife’s deli business

Stephen Mungomery has been ordered to pay reparations of more than $1.2 million after he was found guilty of cooking the books for his wife's deli business. 

Between March 2009 and October 2012, Mungomery lodged 46 business activity statements (BAS) on behalf of his wife’s business, Gourmet Providores Pty Ltd. In each BAS lodgment, Mungomery included expenses incurred by his sole trader entity Epicure Consulting and Training Solutions.

When the ATO asked Mungomery to produce the invoices to substantiate the claims, he produced 24 Epicure issued invoices with a total of $13,767,466 in sales ($1,253,511 GST inclusive). The invoices were for a range of costs including $5 million for website development and more than $2.6 million for franchise development.

"These invoices accounted for 92 per cent of all expenditure, did not bear any commercial reality and were never paid," the ATO said. 

The ATO’s investigators discovered that the initial website developed for Gourmet Providores was actually created by a different company at a cost of $7,885. Mungomery’s franchise development claims were also found to be fraudulent. 

Assistant commissioner Peter Vujanic said it was astounding that anyone thought they could get away with such brazen fraud against the Australian taxation system.

"This wasn’t an honest mistake by a small business owner trying to do the right thing – it was a calculated and deliberate attempt to commit fraud and steal money from taxpayers," Mr Vujanic said.

"This kind of illegal behaviour takes away potential tax dollars from the Australian community which could otherwise go to essential infrastructure services such as roads, schools and hospitals.

"As this case demonstrates, if you’re caught breaking the law we will hold you accountable, even if it means pursuing you in the criminal judicial system."