Accused fraudster bought helicopter, farm

A man accused of hiding about $5 million from the tax office spent the cash on a helicopter, a farm, rent and school fees, a Sydney court has heard.

Timothy Charles Pratten has pleaded not guilty to seven charges of obtaining a financial advantage by deception.

Crown prosecutor Michael McHugh told the Supreme Court trial that Pratten failed to properly declare his income between 2003 and 2009 and used trusts and companies in Vanuatu and Australia.

About $2.9 million was paid into Pratten's account and about $2.1 million was used to buy and service a helicopter, pay rent on his Darling Point home, school fees for his two daughters and to purchase a hardware store and land at Stroud, north of Newcastle, Mr McHugh told the jury.

"The money should have been declared in tax returns," he said.

"It's about dishonesty."

Pratten allegedly made the money selling insurance to small businesses and when regulations were changed after HIH collapsed in 2002, he shifted several companies and their controlling trusts to Vanuatu, where the new, more-stringent Australian laws didn't apply.

As well as not declaring his actual income to the ATO, Pratten was "laying a false trail," Mr McHugh said.

The trial continues.