Australia's Victoria State Revenue Office Cracks Down On Tax Evaders

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

13 December 2001

According to reports from the Australian press, a tax evasion crackdown will come into effect soon in the state of Victoria after an investigation lasting over a year has revealed a loss of tax of up to A$30 million.

The Herald Sun has confirmed that State Treasurer John Brumby has announced plans to hire more tax investigators, strengthen compliance among private agents and increase auditing. The number of outsourced agents collecting stamp duty will be reduced to enable 20 more investigators to conduct state audits throughout Victoria.

It is expected that the crackdown will have a huge effect on businesses that have used legal loopholes to evade stamp duty. 'The reform package is required to address some gaps in the system,' said Mr Brumby. 'I think it's sending a message that we're tightening up the system, closing up some of the loopholes that have been there in the past. And sending out a clear message that the SRO (State Revenue Office) will be collecting the tax that is ... required.'

The Herald Sun has reported how, for example, millions of dollars of stamp duty owed to the Government was used instead to pay bookmakers in Vanuatu and finance a major harness racing syndicate.

Mr Brumby said the crackdown would involve making electronic information systems more efficient and obligating agents to comply with more rigorous reporting requirements and tighter collection guidelines. 'This overhaul has been necessary because the previous government regarded an appropriate compliance program as an obstacle to their over-zealous outsourcing and cost-cutting agenda,' charged Mr Brumby.

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