Project Wickenby Yields More Results For ATO

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

30 October 2008

Australia's multi-agency crackdown on offshore tax evasion has scored yet another victory after two former Brisbane company directors were last week sentenced to three years by the Queensland District Court for tax fraud.

The scheme was investigated by the Australian government-funded Project Wickenby Taskforce, which has so far resulted in 28 people being charged on indictable offences.

Christopher Cornell and Ian Cameron pleaded guilty to two counts of obtaining a financial advantage by deception. The conviction related to a tax fraud designed to reduce the taxable income of a large Brisbane-based liquor business in 2002 by using offshore companies.

The scheme involved around AUD300,000 in false deductions claimed on sham invoices. These funds, less a 10% promoter fee, were returned to the company directors.

The conviction is the result of a partnership between the Australian Federal Police (AFP) and the Australian Taxation Office (ATO) in tackling fraudulent offshore schemes. Other Wickenby partners include the Australian Crime Commission, Australian Securities and Investments Commission and Commonwealth Director of Public Prosecutions (CDPP) with support from the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Tax Commissioner Michael D’Ascenzo said the ATO has worked closely with the AFP over a number of years to identify the use of false invoices, sham loans and international tax fraud.

“The Project Wickenby taskforce is committed to tackling tax haven abuse. Today’s sentence should send a clear message to participants and promoters involved in abusive tax haven schemes that they can expect to face the full force of the law," he said.

“The Tax Office encourages people who may be involved in these types of arrangements to come forward before any of the Wickenby agencies contact them and make voluntary disclosures of their tax affairs," D’Ascenzo added.

So far 23 criminal investigations have been brought under Project Wickenby. In addition, 249 tax audits have been completed (another 352 are underway), with AUD207mn (USD136mn) in tax liabilities raised and AUD79mn in extra taxes collected.

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