A Queensland employer who failed to withhold more than $600,000 in tax from workers wages was yesterday sentenced to three and a half years jail in the Cairns District Court.

John Voyka, 58, of Cairns was found guilty on five counts of defrauding the Commonwealth, for failing to deduct tax from the wages of 44 employees and remit it to the Tax Office.

The court heard that between September 1995 and June 2000 Mr Voyka made cash-in-hand payments to 44 employees, claiming they were sub-contractors and he was therefore not required to withhold tax on their behalf.

However, Mr Voyka had received a letter from the Tax Office in July 1995 notifying him that the workers were employees and that tax must be withheld and remitted to the Tax Office.

A joint investigation with the Australian Federal Police, Centrelink and Immigration in 1999 revealed Mr Voyka failed to comply with this direction.

The court also heard he had breached workers compensation, superannuation and Centrelink requirements.

Tax Commissioner Michael D'Ascenzo said the Tax Office takes instances where employers fail to comply with their PAYG obligations very seriously, particularly where those obligations have been made clear to them.

"This year we will look at PAYG withholding, superannuation and fringe benefits tax relating to more than 4,000 employers so we can help them meet their obligations."

Employers who are unsure if someone is an employee or a contractor should read the information on the Tax Office website at www.ato.gov.au or phone 13 28 66.

Mr Voyka will serve 21 months before being eligible for parole.

The Payroll & HR Press Releases page is sponsored by Midland HR & Payroll Solutions

Discuss this news item in the PayPerShop Forum

More press releases from Australia:
Beware of individuals claiming to be endorsed by the Tax Office offering financial advice