Tag: tax evasion

Tax Crackdown Nets $313 Million in 2008-09

the Assistant Treasurer, Senator Nick Sherry, announced that two high-profile tax crackdowns have this past financial year raised more than $313 million in tax liabilities and penalties against tax cheats.

Project Wickenby targets a range of tax avoidance schemes, including the use of offshore tax havens.

“Phoenix” companies are those which deliberately go into liquidation to avoid tax and other responsibilities, such as superannuation payments and service leave entitlements owed to employees. They then re-emerge as another corporate entity, but with largely the same management.

During the year ended 30 June 2009:

  • Wickenby raised $230 million in tax liabilities and collected $40 million in cash. In addition Wickenby collected $159 million in tax collected in subsequent years from people who have been subject to Wickenby action.
  • Targeting of phoenix practices also raised more than $83 million in tax and penalties within Australia.

Project to date, Wickenby has raised $406 million in tax liabilities and collected $117 million in cash. In addition $235 million in tax has been collected in subsequent years from people who have been subject to Wickenby action. Wickenby agencies have also been responsible for restraining $76 million of assets under proceeds of crime legislation.

The government has allocated  $122 million extra funding for Project Wickenby investigations over the next three years.

The audit results and other key details in the fight against tax crime are contained in a new online magazine published by the ATO Targeting tax crime is available at www.ato.gov.au/targetingtaxcrime

Project Wickenby—Perth Accountant faces charges

An accountant faces Perth Magistrates Court this week was charged by the Australian Crime Commission (ACC) with one count of conspiracy to obtain a financial advantage—a crime punishable by up to 10 years imprisonment.
A 56 year old man is alleged to have conspired with others to facilitate tax evasion relating to trusts and involving a total income for the 1999 to 2001 financial years of more than $52 million. The investigation is ongoing and the ACC anticipates further charges to be laid against other participants.
ACC Chief Executive Officer, Mr John Lawler said that this charge is a significant step in fighting complex tax evasion schemes and reflects the strong collaboration of all agencies involved in Project Wickenby.

“Tax evasion using secrecy havens to hide assets and to conceal income is a serious crime that affects all Australians through losses in public funding and services,” Mr Lawler said.
“The ACC is working collaboratively with Project Wickenby partners by providing them with intelligence to inform our response to abusive tax haven arrangements.”

This operation is one of nine investigations being undertaken as part of the ACC’s Wickenby Matters Determination where the ACC is investigating tax avoidance, tax evasion and large-scale money laundering by a number of Australian promoters and participants.
Project Wickenby is a cooperative partnership between the Australian Taxation Office, Australian Federal Police, Australian Crime Commission, Australian Securities and Investments Commission, Commonwealth Director of Public Prosecutions with support from the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Government Solicitor.

As at February 2009, Project Wickenby investigations have resulted in:
• 23 criminal investigations
• 3 convictions
• 40 people charged on indictable offences
• 444 completed tax audits (and a further 472 underway)
• $287.31 million in tax liabilities raised
• $90.81 million in tax collected (as well as $74.76 million in improved compliance by people reviewed under Project Wickenby)
• $75.7 million worth of assets restrained.

Source http://www.crimecommission.gov.au

Third arrest over multi-million dollar tax fraud

Tuesday, 12 August 2008

The Australian Federal Police (AFP) has charged a 56-year-old man over a multi-million dollar offshore tax avoidance scheme.

Federal agents arrested the Queensland man yesterday afternoon soon after he arrived in Australia on a flight from Vanuatu.

The AFP will allege the man promoted an asset stripping scheme designed to leave Australian companies in a position unable to pay their tax liabilities.

The alleged fraud involved the promotion of tax avoidance through an intricate network of companies in Australia and Vanuatu.

The AFP investigation began after a referral from the Australian Tax Office, which is investigating offshore tax evasion schemes.

AFP National Manager Economic and Special Operations Warren Gray said the joint investigation has identified 69 companies from Queensland, NSW, Victoria, South Australia and the ACT as participants in the asset stripping arrangement, which involves tax fraud in excess of $10 million.

“This operation pre-dates Project Wickenby but it is another example of how the AFP, in concert with its Project Wickenby partners, continues to focus on arrangements involving offshore secrecy havens and money laundering, to ensure those involved pay their fair share of tax,” Commander Gray said.

Two men were arrested in May and are currently before the courts on charges relating to the scheme.

The man was bailed to appear at Maroochydore Magistrates Court on Thursday 14 August charged with conspiracy to defraud the Commonwealth under Section 86(2) of the Crimes Act 1914.

This offence carries a maximum penalty of 20 years imprisonment and/or a fine of $220,000.