Annual Report - COMPLETE - Australian Crime Commission

Coercive powers under the Money Laundering and Tax Fraud Determination were
exercised in various joint agency operations. Use of the coercive powers led to
significant seizures of documentation which was later used as evidence, resulting in
arrests and recovered proceeds of crime.
A significant result under the Money Laundering and Tax Fraud Determination was
the finalisation of the long running Operation Spada. This involved a joint ACC/ATO
investigation of an illegal tax minimisation scheme and the disallowance of tax
deductions of up to $26 million. In February and May 2004 two promoters of the
scheme were sentenced to three years’ imprisonment each for their involvement
in the scheme. Three advisers to the scheme were each sentenced to five years
imprisomnent, dating from 29 June 2004, for their involvement in the scheme. All
the offenders were charged with conspiracy to defraud the Commonwealth. These
sentences should serve as a significant deterrent to the accounting profession and
demonstrate that attempts to evade tax through fraudulent schemes can attract a
prison sentence.
In The Australian on Wednesday 14 July 2004 a respected financial journalist had
this to say about the results of the operation:
“Remember Tuesday July 13 it was the day tax schemes ended in Australia”.
Table 4.12: Output 1.3 – MIDAS use of coercive powers
Measure Total
s28 Examinations held 17
s29 Notices issued 113
The Determination uncovered methodologies used in money laundering and tax
evasion. The various ongoing operations under the Determination have—and will
continue to—lead to a better understanding of how large scale and sophisticated
schemes operate and the best methods to counteract them. Targeting of crime
relating to money laundering and tax fraud continues to affirm the effectiveness of
strategies that target large and suspect international fund movements and financial
service providers suspected of facilitating major profit driven crime.
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Operation Bokusen
Operation Bokusen is an investigation into suspect funds being sent from Australia
to Hong Kong, believed to be the proceeds of drug trafficking and other crimes. A
target was arrested and charged in February 2004 with $318,000 in cash found in
his possession seized as ‘Good in Custody’.
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ACC ANNUAL REPORT 2003–04 I 69
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OUTPUT 1.3: INVESTIGATIONS INTO FEDERALLY RELEVANT CRIMINAL ACTIVITY