Suleyman Erodgan was convicted by the County Court of Victoria after the ATO found that he illegally failed to remit more than $664,000 in PAYGW from his 49 employees to the ATO.
According to a statement from the ATO, Mr Erodgan, the director of labour hire firm Sunraysia Harvesting Contractors also arranged for more than 136 false income tax returns to be lodged on behalf of his 49 employees. A total of $187,994 in tax refunds was paid.
With the help of a financial provider who registered three different shell companies to subcontract for Mr Erodgan, the shell companies registered to take on the liability of tax for the employees of Sunraysia Harvesting Contractors.
The financial service provider who set up the shell companies was sentenced to an 18-month good behaviour bond and a surety payable of $800.
ATO assistant commissioner Peter Vujanic said that while people view tax as a victimless crime, there are serious consequences for the community and the perpetrator.
“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.
“This case shows a deliberate act to attempt to defraud the tax and super system. Mr Erdogan purposefully engaged Mrs Toffoletti in a calculated attempt to evade his tax liabilities and subsequently defraud the tax system,” said Mr Vujanic.