Operation Wickenby Backs Down
Posted on 5 September 2010 by LynThomas in Uncategorized
Paul Hogan
In February 2004 a laptop computer, belonging to Philip Egglishaw of Strachans, a Swiss accounting firm, which organized off shore tax, was accidentally picked up, during a raid on a Melbourne hotel room.
This was the beginning of the much talked about $300 million war on tax fraud and money laundering, known as Operation Wickenby, by the Australian Crime Commission, (ACC), police and securities regulators.
Wickenby was to bring in hundreds of millions of dollars in evaded taxes by high-profile Australians, through tax havens like the Cayman Islands, Vanuatu and the British Virgin Islands. It was claimed approximately 500 Australians were likely to be caught up in the Wickenby net.
Those under scrutiny included rock tycoon Glenn Wheatley, Paul Hogan and artistic collaborator John Cornell, cricketers Shane Warne and Allan Border and a host of others.
All had allegedly used services, directly or indirectly, from Strachans. There have been 11 arrests, but only Wheatley has been convicted – for evasion of tax of little more than $300,000.
Over six years later, Wickenby is struggling to find victims. Many believe it has recovered less than it has cost.
The Australian Taxation Office recently, succumbed to pressure and ended Paul Hogan’s two-week detention as a ‘prisoner in paradise’ by allowing him to leave Australia.
Hogan stood up to the ATO after The Daily Telegraph first revealed he’d been served with a Departure Prohibition Order the night before his mother’s funeral.
This was the second Wickenby backdown. Its case against Vanuatu-based Robert Agius, accused of masterminding a $100 million money-laundering scheme, was formally dropped in the NSW Supreme Court.
Serious questions are being aksed about whether Wickenby -has achieved much at all. Chris Seage, a former senior ATO auditor, said the Hogan controversy has refocused attention on Wickenby’s performance.
Seage has turned the tables, with his own audit on Operation Wickenby, pointing to a $112 million black hole. Seage, now a private tax consultant, said: “They spent $305 million on Wickenby until June 30 this year, but only collected $193 million cash”. He has called for a full investigation by the Federal Auditor-General.
“Who audits the tax office?” he asked, attacking the ATO figure that claimed to have raised “liabilities”, or tax assessments issued, of $855 million, despite only netting $193 million in cash.
“That is a $660 million discrepancy the government does not explain.”
Serge asks whether the ends justified the means given the “draconian” and “frightening” methods used by the ATO and ACC?
“They can compel you to answer questions, freeze bank accounts and other assets, detain you in Australia … under ACC laws it is a crime to tell your wife or even your psychologist you are under investigation.”
The ATO won’t comment on claims Wickenby is a financial failure. Tax Commissioner Michael d’Ascenzo said “Wickenby is about protecting honest taxpayers and holding those to account who engage in this sort of illegal behaviour,” he said. “Wickenby isn’t going away any time soon.”
It’s a disgrace that Paul Hogan has been allowed to leave Australia. He should have been charged, tried and jailed for what he has done. The judicial system in Australia stinks. It’s about time there were major reforms.
It’s a disgrace what became of Australia, an absolute police state ignoring the Geneva Convention and international rights as well as the Ordre Publique. Australia seriously needs to reconsider to not go down the Nazi road – there are so many similarities – eg “tell us about things you see and report them”.