Friday, June 08, 2007

 

Max Reid Jailed


Three sentenced for multi-million dollar tax fraud


In a Media Release today the Australian Tax Office said that one of Australia’s largest GST fraud cases
was finalised today with three South Australians sentenced to a total of 12 years jail for tax fraud of $6.8 million.
Maxwell John Reid, 62 and Edna Reid, 48 of Adelaide and Graham Ernest Dasborough, 75 of
Port Augusta, were found guilty of a total of 66 fraud-related charges.
Appearing in the District Court of South Australia, Maxwell Reid was sentenced to 7 years, 4
months for 66 counts, Edna Reid was sentenced to 2 years for 63 counts, and Graham
Dasborough was sentenced to 20 months for 21 counts.
The court heard that between 2001 and 2002, Reid, a former opal miner in Coober Pedy, and
his two associates submitted 69 fraudulent activity statements claiming refunds on behalf of 30
registered businesses.
The majority of the refund claims related to the fictitious trading of rough and uncut opals
between the businesses.
Over $4 million in refunds were paid, however Tax Office checks identified the fraud and
further refunds of $2.8 million were stopped before they were issued.
A joint investigation by the Tax Office and Australian Federal Police followed and Reid and
his associates were arrested and charged.
Tax Commissioner Michael D’Ascenzo said the sentences are an important reminder that tax
fraud carries serious penalties.
"People who commit tax fraud are disadvantaging the community and the majority of
Australians who do the right thing and pay their fair share of tax.
"That’s why I am committed to ensuring that those who defraud the tax system are detected
and dealt with firmly," Mr D’Ascenzo said.
Before being eligible for parole Maxwell Reid will serve 5 years.
Edna Reid was released on a good behaviour bond of three years and Graham Dasborough was
also released on a good behaviour bond of two years and six months.

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