Jail for diesel fuel rebate fraud

Media Release - Nat 04/021

A Gold Coast man has been jailed for four years for diesel fuel rebate fraud of more than $360,000.

Maxwell Sommerlad, 59, of Palm Beach, was sentenced in the Southport District Court today after being charged with 76 counts of defrauding the Commonwealth.

Between 1995 and 1998, Mr Sommerlad claimed to have bought 1,057,019 litres of diesel and was paid $362,942 through the diesel fuel rebate scheme.

This scheme paid a rebate to people who used diesel in eligible activities such as agriculture, mining, forestry or fishing.

After being identified as a compliance risk, Mr Sommerlad was selected for an audit which revealed he had not bought any diesel.

Tax Commissioner Michael Carmody said this sentence sent a strong message to those thinking of trying to defraud the Tax Office.

“We take deliberate avoidance very seriously and are focussing considerable resources on detecting those who go out of their way to commit fraud.”

Around $2.3 billion in diesel fuel rebate claims were paid out by the Tax Office in the 2002-03 financial year.

Mr Sommerlad will have to serve 12 months before being eligible for parole.

CANBERRA
24 March 2004

Last Modified: Wednesday, 24 March 2004