Stephen Hathway.
It’s not often a court’s asked to order a tax cheat be imprisoned and not released until they cough up the dough.
Maybe that’s a shame? Offenders incarcerated for inflicting bodily harm might benefit from some white collar company, though it’s arguable what good might rub off on those sharing chow and showers with unrepentant tax cheat Nahi Nasri Gazal.
Obtaining insights into the porosity of our taxation system after all is not we expect what the DCoT has in mind in this case, and a prison population schooled in the dark arts of fake invoicing and phoenixing is the kind of hellish vision that might see the Commissioner request that Gazal be detained in solitary confinement, there to contemplate undisturbed the desirability of purging his contempt, assuming that option is still open to him.
But first the DCoT must get Gazal arrested, and that process started in earnest only yesterday when counsel for the Commissioner appeared before NSW Supreme court judge Ashley Black to press their client’s application for a finding that Gazal, in being in contempt of court, should be taken into custody and detained indefinitely.
Gazal’s contempt came about after he withdrew $5.7 million from three bank accounts which were subject to freezing orders.
The withdrawals were made over a period of two years, with Gazal repeatedly presenting fake invoices to incurious ANZ Bank staff.
The accounts had been ordered frozen on the application of the ATO, which is funding Helm Advisory principal Stephen Hathway to claw back some of the tens of millions Gazal is alleged to have stolen from Australian taxpayers via GST fraud.
Justice Black found the contempt proven in the middle of last year but Gazal has so far made no admissions and put the DCoT to proof on every element of its case.
He wasn’t present at yesterday’s hearing and after hearing the DCoT’s submissions the judge said he was minded to make the orders sought but would reserve judgment.
Ordering that someone be incarcerated “indefinitely” is rare but the DCoT’s counsel told the court it is warranted because the indefinite element can be discharged if Gazal either directs that the money be repaid or shows evidence as to why he can no longe repay what he took.
The DCoT also requested there be a 21 day stay on the orders coming into effect so Gazal, who these days is involved with a thing called PrizePop Rewards, has three weeks to purge his contempt on his own terms, or conjure compelling reasons as to why he’s no longer able to.
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Further reading:
Gazal saga takes new turn with Legal Aid application
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