On 17 August 2020, Philip Northam, a key promoter of an intricate asset-stripping arrangement, was sentenced to six years in the District Court of Queensland at Brisbane.
Northam was arrested by the Australian Federal Police (AFP) on a warrant issued in 2008 when he re-entered Australia in November 2018 after living in Vanuatu for a number of years. The 19-year-long joint tax fraud investigation by the ATO and the AFP finally came to an end.
Northam was a key promoter of an intricate tax evasion scheme that was designed to strip Australian companies of their assets and leave them in a position where they were unable to pay their tax liabilities. The illegal scheme offered companies with a tax liability a way to transfer all assets of the company to directors and shareholders leaving the company unable to pay its tax. Once the assets of the company were stripped, the company was dissolved and new directors and shareholders were put in as straw entities that had no means or intention to pay the tax liabilities.
“Tax crime is not victimless. The investigation resulted in almost $4.5 million of lost revenue being recovered.”
AFP Assistant Commissioner Northern Command Assistant Commissioner, Lesa Gale said.
To confidentially report suspected tax evasion or criminal activities, see Making a tip-off or call 1800 060 062.
For more details, please visit: