A Far North Queensland horse trainer has been sent to prison after admitting to a brazen attempt to defraud the Australian Taxation Office of nearly $100,000, a crime he attributed to a spiralling addiction to methamphetamine.
Fraudulent Claims and a Guilty Plea
John Allan Hays, a 52-year-old from Manoora in Cairns, faced the Cairns District Court this week, pleading guilty to a single charge of obtaining a financial advantage by deception. The court heard that between May and June 2022, Hays submitted two fraudulent business activity statements to the ATO.
In these statements, he falsely claimed Goods and Services Tax refunds totalling $96,376. The claims were based on fabricated business purchases and expenses that simply never occurred. The ATO processed the claims and deposited the substantial sum directly into Hays's personal bank account.
A Downward Spiral Fueled by Ice
During sentencing, the court was told that Hays's criminal actions were directly linked to a severe drug habit. His defence barrister, Andrew Bale, stated that his client was in the grip of a "methylamphetamine addiction" at the time of the offences.
Mr Bale explained that Hays, who worked as a horse trainer, had suffered a significant shoulder injury. This injury prevented him from working and led to a depressive episode. It was during this low period that he turned to the drug commonly known as 'ice'.
The fraud was described as not sophisticated but blatant, with the stolen funds quickly spent on sustaining his addiction and other personal expenses. Judge Dean Morzone noted the offending was a direct attempt to finance Hays's drug dependency.
Sentence and a Chance for Rehabilitation
Taking into account his early guilty plea and efforts at rehabilitation, Judge Morzone sentenced Hays to two years and six months in prison. However, the judge ordered that the term be suspended after Hays serves six months behind bars.
This means Hays will be released from custody on October 24, 2024, provided he enters into a three-year good behaviour bond. A key condition of this bond is that he must continue to engage with drug rehabilitation and counselling services.
Judge Morzone emphasised the seriousness of defrauding the Commonwealth, stating it ultimately steals from the broader Australian community. He acknowledged Hays's steps toward addressing his addiction but warned that any breach of the bond conditions would see him return to prison to serve the full sentence.
The case serves as a stark reminder of the legal consequences of tax fraud and the destructive path of methamphetamine addiction.
