Men charged over multi-million dollar tax fraud

Two men will face Brisbane Magistrate’s Court today charged over a multi-million dollar offshore tax avoidance scheme.

The Australian Federal Police (AFP) will allege the men, a 62-year-old from Samford in Queensland and a 72-year-old from Hastings in Victoria, promoted an asset stripping scheme designed to leave Australian companies in a position unable to pay their tax liabilities.

Police will allege in court the men were involved in promoting tax avoidance through an intricate network of companies in Australia and Vanuatu.

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

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.

AFP Manager Economic Warren Gray said the complex investigation was the result of a successful partnership between the AFP and ATO in tackling criminal exploitation of the Australian tax system.

The two men have been 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.