Extortionist crime body suspects Crocodile Dundee of tax travel sham

THE Australian Crime Commission's suspicion that Crocodile Dundee star Paul Hogan misrepresented his tax residency status between 2002 and 2005 to dodge tax is a focus of its pursuit of the star, court documents released yesterday show.

The documents say the commission alleges "a scheme or conspiracy" between Hogan and his tax adviser, Tony Stewart, to produce "sham" travel movements. The aim, according to a summary of the commission's claims prepared by the pair's lawyers, was to allow money to be paid to Hogan when he "was not a tax resident of any country and therefore the payment was free of tax".

Federal Court judge Arthur Emmett released the papers after ruling Hogan and Mr Stewart had lost their long-running bid to keep their identities secret.

The two have been battling a joint probe by the commission and the Tax Office's Operation Wickenby, which is targeting suspected tax fraud and money laundering by a number of wealthy Australians.

Yesterday's release identifies accounting firm Ernst & Young as a major provider of tax and legal advice to Hogan and Mr Stewart.

Michael Outram, the commission's executive director of operational strategies, describes Wickenby in a June 2007 affidavit as "an investigation of national and international significance into allegations of tax fraud and money laundering".

Neither Hogan nor Mr Stewart has been charged.

The focus of the court battle thus far has been their lawyers' bid to gain access to documents accumulated by the commission as part of the Wickenby probe.

Hogan has vehemently denied not paying his taxes and said recently: "I am insulted to be called a tax cheat."

David Rydon, the solicitor for Hogan and Mr Stewart, declined to comment yesterday.

In a submission dated December 7, 2007, the commission wrote: "The issue … is the steps taken by P (Hogan), with the assistance of A3 (Mr Stewart), to misrepresent his tax residency status to authorities in Australia and the United States for the purpose of avoiding liability to taxation."

A counter-submission argues the commission's allegation of sham travel "ignores the legitimacy of the tax planning involved in any international travel by (Hogan) …"

Ernst & Young's involvement is described in affidavits by a principal in its tax division, Marcus Davis. Mr Davis joined the firm in 1998 from a firm where Mr Stewart had also worked. An affidavit from Mr Davis lists three Sydney lawyers and three US lawyers who gave advice about Hogan's affairs.

An Ernst & Young spokeswoman said: "We are confident that all of the work undertaken by EY would not be a matter for Project Wickenby."

LNK

Slimeballs... he should use that world famous knife of his, on them...

Extortionist crime body suspects Crocodile Dundee of tax travel sham

Extortionist crime body suspects Crocodile Dundee of tax travel sham

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