Wellington beneficiary Bradley John Croft jailed after attempt at $200,000 tax fraud using urgent ‘high-trust’ business loan scheme

The fraud involved $62,600 in Small Business Cashflow Scheme loans from Inland Revenue and an attempt to obtain a further $157,939.28 in advances. Photo / 123rf

A Wellington beneficiary has been jailed for more than three years on numerous charges, including tax fraud relating to tens of thousands of dollars.

Bradley John Croft managed to get $62,600 in loans from Inland Revenue and tried to get nearly $158,000 more.

Croft appeared in the Hutt Valley District Court last week and was sentenced on 55 charges brought by Inland Revenue, the police, and the Ministry of Social Development.

The IR charges relate to tax fraud which occurred over four months between May and August 2020 during the Covid-19 pandemic, with some offending also happening in mid-2021.

In 2020, Croft submitted 12 fraudulent Small Business Cashflow Scheme (SBCS) loan applications knowing that neither he nor the people whose Inland Revenue numbers were used were entitled to the loans.

The SBCS loan scheme was administered by Inland Revenue under urgency using a “high trust” application model to ensure eligible businesses could access funds to support the business in a timely manner.

He also filed four fraudulent GST returns when he knew he was not entitled to the GST refunds as he was not operating a business or undertaking a taxable activity, Inland Revenue said in a statement.

Croft also made false amendments to five personal income tax returns and to a Donation Tax Credit (DTC) claim knowing that he was not entitled to the income tax refund or the DTC as he was not self-employed.

In 2021, Croft filed a further four fraudulent income tax returns.

He received $62,600 in total in SBCS loans, and attempted to obtain another $157,939.28 in SBCS loans, DTC and GST and income tax refunds.

The money he received was used for personal discretionary spending, Inland Revenue said.

After taking into account Croft’s guilty plea, attempts at reparation, remorse, and time spent on electronically monitored bail, the judge sentenced him to 3 years and 3 months’ imprisonment on all charges.