We apply the full force of the law to anyone who deliberately evades complying with their Victorian taxation obligations.
Below are examples of successful prosecutions for non-compliance, resulting in significant penalties including lengthy prison terms and substantial costs.
Duties
Seven years and 9 months imprisonment for fraudulent activities
As a result of a tip-off, we investigated a conveyancer who appeared to be conducting fraudulent activities through their employer’s Duties Online (DOL) user access between 2016–18.
Our investigation revealed the conveyancer retained significant amounts of land transfer (stamp) duty from their clients and the monies were never paid to the SRO because the transactions were fraudulently processed as exempt from duty in the DOL system.
In 2021, the conveyancer – who was previously sentenced to 2.5 years imprisonment for other property-related offences – pleaded guilty to multiple criminal charges, including obtaining financial advantage by deception, making and using false documents, and theft.
The conveyancer was sentenced to a total effective sentence of 7 years and 9 months imprisonment.
Two-year community corrections order for fraudulent activities
In another case spanning 2015–16, a conveyancer retained duty from her clients but failed to lodge the transfer of land with Land Victoria, meaning transferees were not the registered owners of the property subject to transfer.
The conveyancer pleaded guilty to several charges under the Taxation Administration Act 1997 and the Crimes Act 1958, and received a 2-year community corrections order.
Two years imprisonment for false and misleading documents
An SRO investigation showed a conveyancer had fabricated a series of documents submitted to the SRO to fraudulently reduce the duty payable on 14 property transfers between 2002–07, stealing more than $250,000 from his clients.
The matter was referred to Victoria Police in 2009, who issued a warrant for his arrest. The conveyancer moved to Tasmania to avoid arrest, but was eventually apprehended and extradited to Victoria in 2018.
In the Supreme Court in 2019, the conveyancer pleaded guilty to 13 charges of obtaining property by deception and 14 charges of using a false document. He received a 2-year custodial sentence (minimum 16 months) less time already served.
Four months imprisonment for tax evasion
A lawyer was sentenced to 4 months imprisonment (suspended for 12 months) after being convicted of tax evasion, having created fictitious identities and land transfers to access a land transfer duty concession on a property he had purchased.
He also pleaded guilty to 3 other charges. The Magistrate indicated they would have imposed an immediate custodial term if not for the guilty plea and sentenced the now ex-lawyer to a $5,000 fine plus costs to the SRO.
First Home Owner Grant (FHOG)
Sentences and orders for failing to meet residence requirements
Several people have been charged under the First Home Owner Grant and Home Buyer Schemes Act 2000 for providing false and misleading information in obtaining a grant for properties they did not reside in.
In one instance, a man was sentenced to 54 days imprisonment and ordered to pay costs after claiming a $7,000 grant and principal place of residence (PPR) duty concession he was not entitled to and using the property to grow a hydroponic marijuana crop.
In other cases, individuals have been ordered to return grants and concessions and pay penalties of up to 100%, as well as substantial costs and fines.
Non-custodial sentences and orders for false and misleading information
A woman received a 12-month good behaviour bond after falsely declaring her spouse had not previously received a First Home Owner Grant, as well as a prior interest in property.
She had 12 aliases but no previous convictions and pleaded guilty to 2 charges in the Magistrates’ Court, receiving a good behaviour bond on the condition she repaid $12,000 to the SRO within 30 days. She was also ordered to pay costs and disbursements.
Others who have falsely declared information related to their spouse or partner have been ordered to pay compensation of up to $41,000 and sentenced without conviction to a 12-month community correction order.
We have also detected false answers and forged documents in FHOG applications prior to approval, leading to charges in the Magistrates’ Court that resulted in substantial fines, good behaviour bonds, and orders to repay the grant with penalties of up to 100% including costs and disbursements to the SRO.
Back to Work
The SRO detected attempted fraud by a number of participants in the Back to Work (BTW) scheme before its closure, leading to successful prosecutions.
Investigations we conducted identified multiple applications that were false and misleading with the intention to deceive and defraud the SRO into making incorrect BTW payments. The total value of the attempted fraud ranged from $200,000 to more than $1.4 million.
In one case, the investigation also exposed fraud committed in other Australian jurisdictions.
These matters were referred to Victoria Police for prosecution. Individuals were subsequently prosecuted, sentenced and ordered to repay money that was paid as a result of these fraudulent applications.
