Bottom of the Harbour Tax Evasion Schemes (From Stains on a White Collar: Fourteen Studies in Corporate Crime or Corporate Harm, P 1-14, 1989, Peter Grabosky and Adam Sutton, eds. -- See NCJ-122651)

• NCJ Number: 122652
• Author(s): A Sutton
• Date Published: 1989
• Length: 14 pages
• Sale Source: Federation Press (Distributed by Gaunt)
• Publication Type: Research (Applied/Empirical)
• Language: English
• Country: Australia

Annotation

A tax evasion scheme discovered in Australia in 1980 resulted in the passage in 1982 of retrospective legislation that invalidated schemes that had obeyed the letter of the law during the 1970's.

Abstract

The scheme was discovered during a probe of the Painters and Dockers Union. The probe revealed that executives and members of the union were being used as bogus directors of companies that were involved in tax evasion in that they had already been stripped of their assets. The schemes exploited the existing law and resulted in major losses in tax revenues, including an estimated $200 million loss from the activities of Brian Maher alone. Maher was ultimately convicted of conspiring to defraud both the Commonwealth of Australia and a named company. More effective enforcement of existing laws might have restricted the damage done by Maher and others, but the revised legislation offers additional protection. Nevertheless, the widely accepted principle that enforcement of business laws should be guided by the letter of the law and not by its legislative intent continues to limit the effectiveness of enforcement. 13 reference notes.