back to article Aussie tech worker payroll scheme operators found guilty of tax fraud

Three of the principals of an Australian scheme that offered free payroll services to tech contractors have been found guilty of conspiring to defraud the Commonwealth and conspiring to deal with the proceeds of crime. Organizations that hire contractors generally do so because they don't want permanent staff on the books. …

  1. Michael Hoffmann Silver badge
    Facepalm

    6 years?!

    In words: SIX years?!

    So they'll get what? 18 months probation?

    PS: that said, I've only once paid those "processing/payroll fees" even with reputable firms. Generally they pass it on to the end client.

    1. Tom Chiverton 1

      Re: 6 years?!

      After an 8 month trial! What the hell was the defence?!

    2. Brian 3

      Re: 6 years?!

      They'll probably get less than that because there always seems to be a BIG quantity discount on white collar crimes these days.

  2. Anonymous Coward
    Anonymous Coward

    What’s that Skip?

    The Australian Taxation Office is after you too!?

  3. Mayday
    Alert

    I almost went with this mob

    Wound up changing to an FTE role which didn’t require payroll management. I do a good job of forgetting about them until every so often a story such as this one pops up to remind me of how much I dodged a bullet.

  4. Somone Unimportant

    next up...

    Now, let's see if the authorities go just as hard after the politicians and bureaucrats that were involved in the 400,000 victim crime of fraudulent invoicing, i.e. "RoboDebt"

    1. Fruit and Nutcase Silver badge

      Re: next up...

      Just now I looked out of the window and saw a herd of pigs fly by

    2. Winkypop Silver badge

      Re: next up...

      People killed themselves over Robodebt. It was that bad. It has destroyed lives and families.

      The senior wonks knew, the junior wonks knew, the pollies pretended they didn’t know.

      Crimes were committed.

  5. Groo The Wanderer

    Who cares about the "maximum penalty?" No one EVER serves "the maximum penalty" for white-collar crimes. :(

  6. gnasher729 Silver badge

    Out of curiosity: Are any contractors getting their money? Did these scammers legally scam the tax office or died the tax office now want money from the contractors?

    1. Anonymous Coward
      Anonymous Coward

      Talking with some of the affected contractors at the time, they were still liable for the tax debt and were being pursued.

      1. Richard 12 Silver badge

        What?

        How is an employee liable for the debts of their employer?

        What is this, IR35?

  7. elsergiovolador Silver badge

    MUC

    We have this in the UK after IR35 changes. Thousands of fake umbrella companies sprung up that were not paying taxes on workers' behalf or used different loopholes to unlawfully reduce the amount they paid.

    Also look into Loan Charge.

    In the UK, however, the lazy tax man is rather going after the workers who don't have money to defend themselves and fraudsters can enjoy their riches.

    1. Roland6 Silver badge

      Re: MUC

      You missed the use of offshore arrangements by the umbrella operators, which were wholly legal because the uk resident/employee wasn’t a director of the offshore company that employed them.

      I’m a little surprised Plutus Payroll weren’t availing themselves of the benefits of offshoring; or does Oz have laws prohibiting offshore arrangements?

  8. Mike 137 Silver badge

    Who says the UK has no useful exports?

    "In Australia, a market has therefore sprung up for agencies that put contractors on the payroll as employees, pay their taxes and make their compulsory retirement savings payments. Contractors usually pay a point or three of their incomes for those services."

    Well done, we've just exported IR35. Interesting that the market rather than legislation has driven this in AUS though. In the old days we paid accountants to provide payroll services but we didn't become their employees, and the fees were a lot less than 1% of salary (let alone turnover)

    1. Groo The Wanderer

      Re: Who says the UK has no useful exports?

      You've just discovered the North American contractor model that I've worked under for 30-35 years... *LOL*

  9. Mister Dubious
    Coat

    Boosting the bottom line

    "Contractors left hanging while principals splurged on luxury goods..."

    Elon, are you there? Elon? Elon!?

    1. Bear
      Joke

      Re: Boosting the bottom line

      Never thought of Twitter as a luxury item, but now you point it out and it’s a bit obvious.

  10. Anonymous Coward
    Anonymous Coward

    The article failed to mention that one of the ring leaders of this heist was the son the second in charge at the Australian Taxation Office.

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