by taxvacancies.com, Thursday, 8th July 2010

Small business director jailed following Wickenby investigations

James Gerard O’Rourke, 51, was today sentenced to two-and-a-half years jail in the NSW District Court for using a scheme to avoid paying tax on his overseas income.

The judge considered a five year sentence but reduced it after he took into account Mr O’Rourke’s early plea and assistance with authorities.

The charges arose from investigations by the Project Wickenby Taskforce into abusive secrecy haven arrangements.

Mr 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 which were controlled by Vanuatu-based advisers and returned “tax free” to his personal or company account, which he claimed were loans.

His actions resulted in a combined company and personal tax fraud of $180,464.

Tax Commissioner, Michael D’Ascenzo, welcomed the decision and reminded taxpayers to declare income from all sources, including money held overseas, when preparing their tax returns.

“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,” Mr D’Ascenzo said.

Today’s decision brings the total number of criminal convictions under Project Wickenby to 11. There have been a total of 57 people charged with serious offences so far, including those prosecuted.

Mr O’Rourke will serve 15 months jail before being eligible for parole.

For more information go to:

http://www.ato.gov.au/corporate/content.asp?doc=/content/00247605.htm