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Yes they do, and it's sweet WHEN the ATO catches up with them. I know of someone the ATO caught up with, and not only did he have to pay $30K in tax but also $20K in penalties. Of all the businesses to try and screw over, the ATO is not one of them, trust me.

Well if you do it knowingly, then that just makes you a criminal, whether you're caught or not.

Just because he gets $9K back doesn't mean it's legal (if this is far more than he's ever got back with other accountants and his situation hasn't really changed then I'd be wondering). A good accountant is one who gets you maximum tax saving legally! I'm not saying this guy is fraudulent...