AUD14m Tax Evaders Jailed In Australia

by Mary Swire, Tax-News.com, Hong Kong

25 September 2008

Two Queensland men will serve four year jail terms after failing to pay a AUD13.8m fine for customs and excise duty frauds, the Australian Taxation Office (ATO) has announced this week.

Jeffrey Andrew Bryce, and Lawrence Eric Wright were found guilty in 2006 of 45 offences against both the Customs Act and the Excise Act in a case dating back to 1997. Mr Wright started his jail sentence in May 2007. Mr Bryce commenced his sentence when he was arrested at his residence Friday September 12, 2008, by Queensland Police on an arrest warrant issued by the Brisbane Supreme Court.

Both men were principals of Brisbane-based Labrador Liquor Wholesale Pty Ltd.

In March 2006, the company and both principals were ordered in the Supreme Court of Queensland to pay AUD1.01m in evaded customs and excise duty. Both men and the company were also fined AUD5.06m each, or AUD15.18m.

In December 2006 the Court of Appeal of Queensland reduced the evaded duty amount to about AUD926,000 and the fines to AUD4.6 million each, or AUD13.8 million.

Labrador Liquor Wholesale operated a licensed bond store where goods could be temporarily stored without having to pay customs duty.

Between May 1995 and May 1996, the company exported seven shipping containers to Fiji and one to the Solomon Islands, providing documents to Customs indicating the contents of the containers were alcohol and cigarettes.

Only a small amount of alcohol and cigarettes were in the containers with most of the duty-free goods being sold in Australia.

Acting Tax Commissioner Jennie Granger praised the persistence of both Tax and Customs officers in bringing the matter to a conclusion. She also thanked the Queensland Police for its efforts in executing the arrest warrants.

“Fraud that involves selling non-duty paid product into the domestic market damages the viability of legitimate businesses,” Ms Granger commented, adding:

“We take fraud seriously and focus considerable resources on detecting and acting against businesses doing the wrong thing.”

Customs National Manager Investigations, Richard Janeczko, said it was pleasing that the long running case had finally reached a conclusion and this demonstrated that those who sought to gain an advantage by fraudulent means would be brought to justice.

“The successful result of this case can be attributed to the tenacity of Customs and Taxation investigators. The case is one of the most complex fraud cases investigated and prosecuted by the agencies,” Mr Janeczko explained.

The case took nine years to be heard before the court, due to a lengthy series of unsuccessful appeals to the Queensland Court of Appeal and the High Court.

Both men will have to serve a minimum jail term of two and a half years.

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