Save
Tax evader imprisoned after 19-year investigation
A tip-off 19 years ago has led to a key conspirator of an elaborate multimillion-dollar tax evasion scheme being imprisoned for six years.
Tax evader imprisoned after 19-year investigation
A tip-off 19 years ago has led to a key conspirator of an elaborate multimillion-dollar tax evasion scheme being imprisoned for six years.
The District Court of Queensland found that Philip Northam was a key promoter of an intricate tax evasion scheme, which was designed to strip Australian companies of their assets, leaving them in a position where they were unable to pay their tax liabilities.
The illegal scheme concocted a way for companies to transfer all assets of the company to its previous controllers, leaving the company an empty shell unable to pay its tax debts.
Along with four others, Mr Northam would strip a company of all its assets, bring in new straw directors, and shareholders were put in before the company was wound up, leaving the entities with no means to pay the tax liabilities.
A total of 15 companies took part in the scheme, putting $4.59 million worth of taxes at risk, but the ATO stated it has recovered most of the money.
The investigation started with a tip-off by a tax agent that brought the scheme to the attention of the ATO in early 2000, with the case referred to the Australian Federal Police (AFP), which began a criminal investigation.
Mr Northam, who moved to Vanuatu for a number of years, was finally arrested in November 2018 when he re-entered Australia, after an AFP warrant was issued a decade earlier.
The 60-year-old is the final person to be sentenced, following the sentencing of his co-conspirators Ian Sidney Henke, Robin David Huston and Brian Francis Fox in 2011, and Clarence Lawry Marae in 2013.
ATO assistant commissioner Aislinn Walwyn said the sentencing was a result of a 19-year investigation by the Tax Office and the AFP.
“This sentencing shows the tenacity and persistence of the ATO and our partner agencies to hold enablers of illegal schemes to account and to secure an outcome for the benefit of honest taxpayers. It also goes to show that tip-offs from the community do pay off,” Ms Walwyn said.
“Tax crime is not victimless. This arrangement was set up to deliberately evade paying tax, which is money that could have otherwise been used to fund vital public services that the community relies upon.”
AFP Northern Command Assistant Commissioner Lesa Gale said Mr Northam’s sentencing highlights the commitment of the AFP and its partners to targeting those seeking to defraud the Australian public.
“Tax fraud can make for a complex investigation, but the AFP remains up to the challenge and is grateful for the specialist expertise of our partners through the Serious Financial Crime Taskforce that allows investigators to investigate these matters thoroughly and effectively present these matters before the courts,” Ms Gale concluded.
RELATED ARTICLES
About the author
About the author
Scams
From awareness to accountability: Banks turn scam prevention into a core P&L discipline
Scam Awareness Week is the headline, but the real story is a structural shift: fraud prevention is moving from compliance footnote to board-level performance driver. ANZ’s 15% reduction in scam losses ...Read more
Scams
Inside ANZ’s $100m scam‑fight playbook: how banks can turn awareness into prevention
Public-service messaging won’t stop modern scammers. Australia’s banks are moving from posters to prevention, blending AI, network controls and customer friction to change outcomes. ANZ’s program ...Read more
Scams
ANZ warns Australians to stay alert for scams during end of financial year
ANZ is warning customers to remain vigilant during the end of financial year period as scammers attempt to target Australians during tax time. Read more
Scams
ANZ warns customers of potential scam surge following RBA rate cut
ANZ has issued a warning to customers about a potential rise in scam activity following the Reserve Bank of Australia's decision to lower the cash rate target by 25 basis points. Read more
Scams
Financial Basics Foundation warns of e-commerce ‘gamification’ targeting Gen Z shoppers
The Financial Basics Foundation has raised concerns over the impact of increasingly sophisticated digital marketing tactics on young consumers during Financial Literacy Month, highlighting the need ...Read more
Scams
ANZ warns Australians of scam risks following Ex-Tropical Cyclone Alfred
ANZ is urging customers and the broader community to remain vigilant against scammers impersonating trusted organisations in the wake of Ex-Tropical Cyclone Alfred. Read more
Scams
Navigating online money-making: Scams to avoid
In an era where the click of a button can lead to monetary gain, the internet has become a bustling marketplace for those looking to supplement their income. However, where there is opportunity, there ...Read more
Scams
Cyber criminals using interest rates as bait to trick customers
If you’ve ever found yourself on the receiving end of a suspicious phone call, e-mail or text message claiming to be from a major bank and demanding your details, you’re not alone – and experts are ...Read more
Scams
From awareness to accountability: Banks turn scam prevention into a core P&L discipline
Scam Awareness Week is the headline, but the real story is a structural shift: fraud prevention is moving from compliance footnote to board-level performance driver. ANZ’s 15% reduction in scam losses ...Read more
Scams
Inside ANZ’s $100m scam‑fight playbook: how banks can turn awareness into prevention
Public-service messaging won’t stop modern scammers. Australia’s banks are moving from posters to prevention, blending AI, network controls and customer friction to change outcomes. ANZ’s program ...Read more
Scams
ANZ warns Australians to stay alert for scams during end of financial year
ANZ is warning customers to remain vigilant during the end of financial year period as scammers attempt to target Australians during tax time. Read more
Scams
ANZ warns customers of potential scam surge following RBA rate cut
ANZ has issued a warning to customers about a potential rise in scam activity following the Reserve Bank of Australia's decision to lower the cash rate target by 25 basis points. Read more
Scams
Financial Basics Foundation warns of e-commerce ‘gamification’ targeting Gen Z shoppers
The Financial Basics Foundation has raised concerns over the impact of increasingly sophisticated digital marketing tactics on young consumers during Financial Literacy Month, highlighting the need ...Read more
Scams
ANZ warns Australians of scam risks following Ex-Tropical Cyclone Alfred
ANZ is urging customers and the broader community to remain vigilant against scammers impersonating trusted organisations in the wake of Ex-Tropical Cyclone Alfred. Read more
Scams
Navigating online money-making: Scams to avoid
In an era where the click of a button can lead to monetary gain, the internet has become a bustling marketplace for those looking to supplement their income. However, where there is opportunity, there ...Read more
Scams
Cyber criminals using interest rates as bait to trick customers
If you’ve ever found yourself on the receiving end of a suspicious phone call, e-mail or text message claiming to be from a major bank and demanding your details, you’re not alone – and experts are ...Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Australian Wealth Management Awards
- Australian Wealth Management Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Commerical Finance Awards
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Fund Manager of the Year Awards
- ifa Excellence Awards
- Lawyers Weekly 30 Under 30 Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- SMSF Technical Strategy Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.