After pleading guilty to two counts of dishonestly obtaining a gain from the Commonwealth, Melbourne businessman and former accountant David Brandi has been sentenced to two years in jail, to be released immediately on a $5,000 good behaviour bond, according to the Australian Tax Office (ATO).
Mr Brandi was found to have obtained fraudulent GST refunds for his tax clients totalling $135,248, which has since been repaid in full.
The offence occurred between January 2010 and March 2010, when Mr Brandi falsified a number of business activity statements (BAS), inflating the GST refund claims. These included the falsification of extra invoice amounts attributed to construction costs.
At the time, Mr Brandi was the principal of the tax accountancy firm Brandi & Co. The false documents were prepared for a client consisting of a group of property development companies involved in building residential units.
ATO uncovered emails during the course of its investigation showing that Mr Brandi pressured employees who may have become aware of the crime to stay quiet. He reportedly emailed certain staff, warning them to “keep their traps and emails shut” about the false refunds.
The investigation also found that Mr Brandi asked one employee to provide forged documents in an attempt to back up the false GST claims.
ATO assistant commissioner Ian Read said the ruling illustrated the ATO’s position that a firm stance must be taken against anyone whose actions damage the integrity of the tax system.
“Tax and BAS agents play a vital role in contributing to and protecting the integrity of the Australian tax and super systems, and while the majority of registered agents do the right thing, unfortunately there are some agents who take advantage of their trusted position for financial benefit,” Mr Read said.
“Mr Brandi’s actions show a complete disregard for not only the law, but also his clients’ trust. Tax fraud is not a victimless crime – those who engage in this criminal behaviour are obtaining an unfair advantage over those who do the right thing.”
