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
High-net-worth advisers seeking to grow their businesses are likely to find alternatives to be a key part of the puzzle amid investor demand, according to Praemium’s head of private wealth.
The financial advice profession has lifted back above the 15,500 mark this week thanks to a double-digit net rise in adviser numbers, according to Wealth Data.
A closer watch on licensees that fall short on cyber security protections is among a dozen new enforcement priorities announced by the corporate regulator for 2025.
Research house Morningstar has welcomed a new director for manager research to cover Australian and New Zealand fund managers.
