The NSW Supreme Court has sentenced a former accountant and tax agent to jail terms totalling over 8 years, although to be released on 17 September 2017 upon entering a recognisance to be of good behaviour.
The Court said the offender was involved in a significant international tax avoidance scheme. She was sentenced in respect of 4 charges in relation to 2 conspiracies to defraud the Commonwealth, which arose out of her involvement in that scheme, having pleaded guilty to those charges earlier this year. The Court said Ms Liles was also involved in a third conspiracy which was the subject of 2 other charges, to be dealt with under s 16BA of the Crimes Act 1914 (Cth).
The Court said the nature of the tax evasion scheme “in which Ms Liles became so intrinsically involved” was designed to remove profits from Australian companies, without them paying company tax on those profits and without Ms Liles’ co-conspirators, who were directors and shareholders of those companies, paying personal income tax on the monies which eventually came into their hands, by operation of the scheme. In the case of each conspiracy, the Court said Ms Liles helped her clients to incorporate an international company in Vanuatu, using the services of an accounting firm, which was based in Port Vila.
The Court said it was satisfied there could be no question that Ms Liles’ offences “were serious indeed, considerably more serious than was submitted on her behalf”. It considered a term of imprisonment was warranted for the offences, notwithstanding her age, her medical problems, and the fact that she is the principal carer of her husband (who has multiple medical problems). The Court said “Ms Liles’ offending was sustained over a long time. It was planned and deliberate offending, involving a significant breach of trust on the part of a qualified and highly placed accountant”. It sentenced her to a total period of imprisonment of 8 years and 3 months, but that she be released after 4 years, 11 months (on 17 September 2017), on a recognisance that she be of good behaviour during the balance of her term, without lodging cash security.
(R v Liles [2012] NSWSC 1249, NSW Supreme Court, Schmidt J, 18 October 2012.)
[LTN 203, 19/10]