A Vanuatu-based accountant, reportedly with links to a big-four accounting firm, has been arrested by the Australian Federal Police (AFP) for his part in promoting offshore tax avoidance schemes.
Federal agents arrested the Queensland man yesterday afternoon soon after he arrived in Australia on a flight from Vanuatu.
The police allege that the suspect, named by The Australian newspaper as Brian Francis Fox, 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 as part of a multi-agency effort designed to crack down on offshore-based financial crime and money laundering under the banner of Project Wickenby.
AFP National Manager Economic and Special Operations Warren Gray said the joint investigation has identified 69 companies from Queensland, New South Wales, Victoria, South Australia and the Australian Capital Territory as participants in the asset stripping arrangement, which involves tax fraud in excess of AUD10mn. This offence carries a maximum penalty of 20 years imprisonment and/or a fine of AUD220,000.
“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.
It is understood, however, that the investigation into Mr Fox and his subsequent arrest are unconnected with the highly-publicised arrest of Western Australia-based accountant Robert Agius earlier this year, which took place under Wickenby. Agius is also accused by the federal authorities of promoting abusive tax evasion schemes linked to Vanuatu.
Leading up to the arrest of Agius, Australian and international agencies had conducted operations in three countries - Australia, New Zealand and Vanuatu - while the Australian Tax Office had conducted 80 audits, examining allegedly false tax deductions exceeding AUD90mn (USD84mn).
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