Former Tax Agent Sentenced On Tax Fraud

A former tax agent was sentenced to the maximum length of home detention possible for sustained fax fraud.

Chafic Georges, appearing on 19 tax fraud charges, was sentenced to 12 months home detention in the Manukau District Court on March 12.

Georges was a registered tax agent and sole trader from October 2006 until the business stopped in January 2018. Before that he worked for Inland Revenue.

An investigation was started following a risk review of Georges’ tax affairs, which showed Georges and his family accumulated wealth not accounted for in his income tax returns.

What was uncovered was sustained fraud, including filing false personal tax returns and false income tax and GST returns for third parties. The tax refunds were paid to bank accounts Georges controlled, for his personal use.

The total pecuniary advantage Georges received in relation to his personal income tax liability and Working for Families Tax Credits (WfFTC) payments was about $208,000. The total GST, income tax and WfFTC for third parties was just over $11,000.

The Court heard there were very serious aggravating features in this case such as Georges’ previous employment with Inland Revenue, his breach of trust as a tax agent, the extreme length of time of the offending, and continuing to offend even in the face of investigation.

The Judge started with a sentencing of 40 months imprisonment which was reduced by 25% for guilty plea and another 15% for his health, age (71) and offer of reparation, bringing the possible sentence to 24 months in prison which meant home detention could be considered.

The judge believed Georges was unlikely to re-offend and, largely because of his age and health issues, held that a final sentence of 12 months home detention was appropriate.

The Judge also ordered that full reparation be paid.

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