The Australian tax dodge case

All most fun. And proof that criminals are idiots of course. The only surprising thing here is that Daddy was a senior tax officer.

Basics – set up as a payroll processing company. Gain contracts to do the work.

Then don’t pay the correct PAYE.

I mean, yes, there’s more, but that’s the basics.

At which point criminals are idiots. The taxman is going to come looking for this money at some point. So you don’t spend it on cars and properties and watches and so on. Most certainly not in the tax jurisdiction you’re ripping off you don’t.

Sigh.

Suitcases of cash in some jurisdiction with no extradition treaty is the way to go.

Oh, and skipping just as the first letters start arriving asking where the PAYE is.

17 comments on “The Australian tax dodge case

  1. It’s the length of the scam that impresses me. They’ve been running for several years now – I can find posts about them back in 2014.

  2. The dumb ones get caught, the smart ones get away with it.

    Many years back there was a benefits scam by some benefits agency workers. They got away with it for quite some time, could have carried on for years or even decades. One of the group purchased a high value car (multiples of his annual salary) and boasted he paid cash for it.
    Their method was great, their cover story fine – and the other members of the group were careful not to overspend.

    Anyone remember the riots a few years back? And the idiots caught after looting shops and posting their haul on social media?

    The idiots get caught….

  3. It’s the length of the scam that impresses me. They’ve been running for several years now – I can find posts about them back in 2014.

    Amateurs. You can keep the IRS chasing its tail over payroll taxes for longer than three years without much difficulty.

    And actually, the way to keep the scam running is to answer the letters as soon as they come in the mail. You can string it out for a long time just by playing helpful.

    Of course, at some point you still have to pack a suitcase full of cash and fly somewhere…

  4. I think something similar was proposed in Warren Zevon’s song “Mr Bad Example” from 1991

    https://www.youtube.com/watch?v=b0NlXKPaqZg

    “Fourteen hours later I was down in Adelaide
    Looking through the want ads sipping Foster’s in the shade
    I opened up an agency somewhere down the line
    To hire aboriginals to work the opal mines
    But I attached their wages and took a whopping cut
    And whisked away their workman’s comp and pauperized the lot”

  5. Dennis the Peasant said:
    “Amateurs. You can keep the IRS chasing its tail over payroll taxes for longer than three years without much difficulty.”

    There was a rather amusing little book called “Bureaucrats – How To Annoy Them!” which gave good examples of how to keep them going round in circles, although possibly less useful in the modern era.

    Written under a pen name, but allegedly by the astronomer Patrick Moore after he was irritated by a particularly vile government lickspittle.

  6. Chirac was caught with his hand in the till while mayor of Paris.
    30 years later he’s not repaid a cent nor done a day in clink; regarded as the grandad of the nation.

    Go figure: politicians can get away with it.

    Tapie lost his case today. (€450 million or so?) Case 25 years old. Will he pay? From Father Christmas’s account, no doubt.

  7. More than a few times have read of charity treasurers nicking money and getting caught. Lack of financial controls overseen by the person who did the crime…
    I wonder sometimes how some charities survive.

  8. TimN
    Wasn’t “Send lawyers guns and money, the shit has hit the fan” one of Zevon’s songs?

  9. “proof that criminals are idiots of course.” – only the ones that get caught. and how often is that?

  10. This reminds me of a story in the local paper.

    Lad works for the Royal Mail as a postie. He gets his hands on an RM fuel card ostensibly to fill up the van. He then starts using it to fill up his car on the quiet.

    After a short while matey gets a bit bolder, and starts filling up his mates cars wholesale. He even used the card while on holiday in the Lakes 100+ miles away. Even the RM managed to notice that one!

  11. “One of the group purchased a high value car (multiples of his annual salary) and boasted he paid cash for it.”

    Echoes of the film Goodfellas there, except I imagine none of the co-conspirators were played by Robert de Niro and so no-one ‘disappeared’.

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