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  • » Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

#1 2016-02-15 06:07:24

Bullion Baron
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Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

61_bullion_baron_header_ss.gif

More than two years after the Australian Federal Police initially reported serious fraud was occurring in Australia's bullion industry we are yet to see any publicised progress on the investigation or action that has been taken.

In July 2014 there was an article from Chris Vedelago which provided details from two civil lawsuits in Queensland's Supreme Court containing allegations involving a number of businesses in Australia's precious metals market.

The AFP Annual Report for 2013/2014 briefly mentions the operation (Operation Nosean, no follow up is made in the 2014/2015 Annual Report)... Read More

CONTINUED: Australia's Bullion GST Fraud Still Under Wraps

Operation%2BNosean.jpg

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#2 2016-02-15 06:47:44

willrocks
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

The only GST fraud I'm aware of involves an entity receiving $50 billion in GST revenue each year.


"You can ignore reality, but you cannot ignore the consequences of ignoring reality." - Ayn Rand

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#3 2016-02-15 07:41:36

SpacePete
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

More:

GST litigation casework continues to flow from project work relating to cash economy matters and refund integrity issues. Also, there are a steady number of new cases involving inappropriate input tax credit claims made between associates, often in the context of phoenix activity.

Seven new significant cases were received during December 2014. Six of these cases involve similar issues concerning the purported purchase of gold jewellery and subsequent dealings in gold bullion. The Commissioner's view is that these cases involve sham transactions. These cases will be progressed in the early part of 2015.

https://www.ato.gov.au/printfriendly.as … t-2014-15/


Catus amat piscem, sed non vult tingere plantas

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#4 2016-02-15 16:56:54

SpacePete
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Bump.

Any speculation as to why it is being kept secret?


Catus amat piscem, sed non vult tingere plantas

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#5 2016-02-15 17:39:23

sammysilver
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

SilverPete wrote:

Bump.

Any speculation as to why it is being kept secret?

Either they've zeroed in on a king pin, or a prominent businessman or politician, and they need to hush it up.


The price we pay for the good life is public servitude.

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#6 2016-02-15 19:06:36

Bullion Baron
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

SilverPete wrote:

Bump.

Any speculation as to why it is being kept secret?

Nothing solid, but I heard from a 'source' that the ATO/AFP know who many of the involved parties are, but are still in the process of gathering evidence required to make it stick.

I am surprised there is not more interest from the media given the size of fraud.

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#7 2016-02-15 19:28:54

SpacePete
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Bullion Baron wrote:
SilverPete wrote:

Bump.

Any speculation as to why it is being kept secret?

Nothing solid, but I heard from a 'source' that the ATO/AFP know who many of the involved parties are, but are still in the process of gathering evidence required to make it stick.

I am surprised there is not more interest from the media given the size of fraud.

The ATO may not presently be too pleased that attention is being drawn to this.  The media may have been advised not to report on it.

But how many "involved parties" could there conceivably be? There can't be many in Australia (not big ones anyway).


Catus amat piscem, sed non vult tingere plantas

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#8 2016-02-15 19:46:27

Skyrocket
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Can this lead to new laws that could affect people that stack PMs? Like tighter declaring, ect?

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#9 2016-02-15 19:55:38

SpacePete
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Skyrocket wrote:

Can this lead to new laws that could affect people that stack PMs? Like tighter declaring, ect?

What it should do is drive radical simplification of our incredibly complex tax system to remove all the exemptions and shady holes that enable these scams to take place in the first place. Of course that won't happen.


Catus amat piscem, sed non vult tingere plantas

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#10 2016-02-15 20:03:39

Bullion Baron
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

I found a related transcript (Economics Legislation Committee on the 26/02/2015 which shows Senator John Williams questioned Mr Chris Jordan, Commissioner of Taxation, on the investigation), added to the article:

ECONOMICS%2BLEGISLATION%2BCOMMITTEE%2BBullion%2BFraud.png

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#11 2016-02-15 20:08:00

SpacePete
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

That last update makes it sound like it was not really fraud and they couldn't actually charge anyone. Strange.


Catus amat piscem, sed non vult tingere plantas

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#12 2016-02-15 21:43:11

bron.suchecki
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

If you read BB's post you will see the Judgment in the Federal Court of Australia, which shows that they are into a technical lawyers delaying tactics so that is why it is taking time, but even so why hasn't the ATO went to the government and got an amendment to the law to close the loophole?

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#13 2016-02-15 22:14:05

SpacePete
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

bron.suchecki wrote:

If you read BB's post you will see the Judgment in the Federal Court of Australia, which shows that they are into a technical lawyers delaying tactics so that is why it is taking time, but even so why hasn't the ATO went to the government and got an amendment to the law to close the loophole?

What delaying tactics? Sounds like there may be some legal questions around the validity of the charges and people invoved are being publicly evasive. But it is a good question.... if there is a valid loophole, why has it not been closed?


Catus amat piscem, sed non vult tingere plantas

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#14 2016-10-14 04:51:24

Bullion Baron
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#15 2016-10-14 05:34:26

Tactile
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Buying out the Perth Mint would of worked out well...

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#16 2016-10-14 06:12:17

SilverDJ
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Woah, so ABC Bullion have/are going into liquidation?

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#17 2016-10-14 06:32:44

scrooged
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

When all is said and done ...

"One would argue the government shouldn't be in the space anyway. It's non-core, particularly when you have a very successful private enterprise in the marketplace that's proven it isn't necessary for government to be in there"

Another nail in the coffin for those pro reality.

Last edited by scrooged (2016-10-14 06:34:38)

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#18 2016-10-14 07:34:44

Bullion Baron
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

SilverDJ wrote:

Woah, so ABC Bullion have/are going into liquidation?

I take it they've just amputated the dead limb.

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#19 2016-10-14 08:06:15

SilverDJ
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Bullion Baron wrote:
SilverDJ wrote:

Woah, so ABC Bullion have/are going into liquidation?

I take it they've just amputated the dead limb.

Ah, I read that wrong. It's ABC refinery that is going bust, not ABC Bullion.
But still, it's this HUGE news?

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#20 2016-10-14 17:31:48

Bullion Baron
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

SilverDJ wrote:

Ah, I read that wrong. It's ABC refinery that is going bust, not ABC Bullion.
But still, it's this HUGE news?

This ABC Refinery went bust...

http://abncheck.com.au/abn/82154520199

Around the same time this ABC Refinery started business...

http://abncheck.com.au/abn/13607537548

All very shady. Really need an investigative journalist to get in there and dig up the whole story/ask the hard questions... are there any left in Australia capable of doing the job?

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#21 2016-10-15 21:30:31

Bullion Baron
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Today the Serious Financial Crime Taskforce (Taskforce) released its first Intelligence BulletinExternal Link, designed to highlight areas of concern and help people make informed decisions about their tax affairs.

The Intelligence Bulletin focuses on activities in the gold bullion and precious metals refining industry. Taskforce agencies are focussing on exposing sophisticated arrangements seeking to exploit GST rules in relation to precious metals.

https://www.ato.gov.au/Media-centre/Med … Taskforce/

Intelligence Bulletin: https://www.afp.gov.au/sites/default/fi … ullion.pdf

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#22 2016-12-05 04:28:59

whinfell
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

There's an article by Robert Gottleibsen in today's Australian newspaper about the GST fraud:

The bungles that forged Australia's biggest tax fraud

Australia is in the midst of a crisis that has the potential to lead to a major tax revenue loss and result in the closure of most of one of our oldest industries — gold refining.

Firstly, the nation is being hit by the biggest gold tax fraud in its history.

At least $500 million is at stake. The final loss may be less but there is a real risk it could be a lot greater.

Secondly, the fraudulently obtained money is still leaving the country and there are some indications that Middle Eastern gangs have got control of the scam, with the possibility the hot money is now ending up with Islamic State, but no one can confirm that.

Thirdly, the ATO has begun issuing gold refiners retrospective GST assessments and taking other actions which will have the effect of sending much of the gold refining industry to the wall.

There are about 200 small- and medium-sized businesses in the industry with thousands of employees. At the weekend, one of Australia's largest gold operators, M.A.K, told the industry that it was on the verge of liquidation. M.A.K is not a refiner, so is not directly affected by the ATO actions against them but in coming weeks, many refiners will go to the wall.

Full article: http://www.theaustralian.com.au/busines … 3a81eb475b

The full article is behind a paywall, but you may be able to get to it via Google News (search for 'Great Australian gold fraud' and follow the link)

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#23 2016-12-05 04:42:39

House
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Had the potential to "result in the closure of most of one of our oldest industries — gold refining."?!! lol

"with the possibility the hot money is now ending up with Islamic State, but no one can confirm that." lol

Would be a little bit more concerned about the $4bn in Centrelink overpayments and scams.


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#24 2016-12-05 05:00:21

Ipv6Ready
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Mary Crooklin, if she thought there was something


Interested in a wide variety of low premium legal tender World Silver coins, average conditions is fine.
Will pay a decent premium for a variety different silver coins in single lots, not looking 10, 20 or more of same coins.
Note I tumble these to clean them before I put it in jars for display, so I dont want to buy any rare coins for preservation.

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#25 2016-12-05 05:00:43

Ipv6Ready
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Re: Bullion Baron: Australia's Bullion GST Fraud Still Under Wraps

Mary Crooklin, if she thought there was something fishy why keep doing it lol.

That's like a pawn porkers saying, yeah seemed dodgy but I take the business.

Last edited by Ipv6Ready (2016-12-05 05:02:21)


Interested in a wide variety of low premium legal tender World Silver coins, average conditions is fine.
Will pay a decent premium for a variety different silver coins in single lots, not looking 10, 20 or more of same coins.
Note I tumble these to clean them before I put it in jars for display, so I dont want to buy any rare coins for preservation.

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