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Auckland December 15, 2016
Michael Robert McDonald’s sentencing hearing has concluded in the Manukau District Court in relation to theft of his clients’ money and misleading the Inland Revenue Department.
Mr McDonald has been sentenced to four years’ imprisonment following the Serious Fraud Office (SFO) prosecution.
He pleaded guilty in August to four charges of theft by person in a special relationship, 13 charges of dishonestly using a document and one charge of false accounting.
Mr McDonald had been a registered tax agent since 2002. In that role, hefiled GST, PAYE and income tax returns on behalf of clients and their related entities.
The prosecution was the result of an Inland Revenue investigation which began in 2012 and was later referred to the SFO.
Between 2007 and 2013, Mr McDonald received money from some of his clients for the purposes of paying tax but failed to forward the money to Inland Revenue. He also filed approximately 250 false GST and income tax returns in order to receive money from Inland Revenue or to retain client funds to which he was not entitled. Mr McDonald also made false entries in one of his client’s financial statements in order to conceal his offending.
SFO Director, Julie Read said, “As a registered tax agent, Mr McDonald occupied a position of trust with both Inland Revenue and his clients. Trusted intermediaries like registered tax agents ensure that the system works efficiently for both Inland Revenue and the taxpayer. In stealing this money, Mr McDonald let down his clients as well as the community who are entitled to expect that tax monies reach their destination for the benefit of all.”
Inland Revenue Group Manager Investigations and Advice, Tony Morris said, “McDonald’s scheme was picked up during a routine audit check and eventually the complex web of transactions he devised was exposed. He clearly had no regard for his clients, taxpayers or the concept of fair play on which our tax system relies.”
A Serious Fraud Office Press Release
