The CCA declined to order a fresh trial because of their age,“they would both be in their 70s at the time of a new trial”,and because of the length of time that had elapsed since the offences occurred.
After an eight-week jury trial last year,Dr Castagna,who will be 72 next week,was imprisoned for a minimum of four years,while 69-year old Mr Agius was jailed for three years.
Mr Agius was serving a non-parole periodof six years and eight months'jail after being found guilty in 2012 for operating unrelated tax avoidance schemes via his Vanuatu-based accountancy firm.
Australian Federal Police officers involved in Project Wickenby were investigating Mr Agius over this earlier tax fraud when they intercepted his conversations with Dr Castagna. Those calls,which were played to the jury,revealed the pair's reluctance to discuss their financial dealings over the phone. In one call Dr Castagna was heard suggesting Mr Agius use a third person’s “cell phone".
When Dr Castagana became a consultant to Macquarie Bank in 1998 he organised for payments to be made to a UK company Billbury,which was controlled by Mr Agius and which operated bank accounts in New Zealand. Billbury was supplying Dr Castagna’s services as a consultant in exchange for payment from Macquarie Bank. From there the payments went into a Vanuatu company controlled by Mr Agius. It was alleged that this was to avoid paying tax.
The Crown case was that $4.5 million of Dr Castagna's money,which was hidden offshore,was channelled back to Australia so he could buy investment properties in the Newcastle area.