Download information regarding Project Wickenby (NAT 7769, PDF, 420KB).
Project Wickenby is a multi-agency taskforce. Its role is to protect the integrity of Australia's financial and regulatory systems by preventing promotion of and participation in abusive secrecy haven schemes.
Timeline
2006
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Project Wickenby starts
AUSTRAC show dramatic rise in fund flow from Australia to secrecy havens
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2007
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Offshore voluntary disclosure initiative begins
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2008
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Positive change in behaviour is seen through compliance dividend
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2010
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Over $1 billion in liabilities have been raised to date. AUSTRAC results show a considerable decline in annual flows to secrecy havens
The first ever extradition of a foreign citizen to Australia for tax fraud and money laundering
Tax information exchange agreement is signed with Vanuatu
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2011
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Results of the offshore voluntary disclosure initiative: 7,699 disclosures with $836.02 million omitted income disclosed
18 people to date have received custodial sentences
Tax information exchange agreement is signed with Liechtenstein
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Goals
- Reduce tax avoidance and evasion.
- Enhance Australia's capability to detect, deter and deal with international tax avoidance and evasion.
- Assure the community the government is tackling serious abuse of the taxation system.
Partners
We lead a partnership of eight agencies, each bringing its expertise to deal with tax avoidance and evasion.
Our partners are the Australian Crime Commission, the Australian Federal Police, the Australian Securities and Investments Commission, the Commonwealth Director of Public Prosecutions, AUSTRAC, the Attorney-General's Department and the Australian Government Solicitor.
Strategies
Project Wickenby agencies have powers to assist in the investigation and prosecution of conduct associated with international tax mischief. Available methods include:
- letters and notices
- access visits and search warrants
- examinations and audits
- recovering proceeds of crime
- taxation assessments
- action for breaches of taxation and corporation laws
- criminal prosecutions of serious and summary matters.
Tools
We have a variety of intelligence techniques and tools to identify secrecy haven arrangements and their promoters. We use computer-based analytical tools to draw links between internal and external data and intelligence and to identify high-risk transactions and the parties involved. Our information sources include:
- AUSTRAC
- international information exchanges under our tax treaties
- financial institutions and other external sources
- credit and debit card transaction data
- tax returns
- internet research
- information from the public.
Concerns
People are becoming increasingly involved in international business and investment. Most dealings with secrecy havens are within the law. However, some schemes we are investigating involve:
- concealing income or gains, or creating false or fraudulent tax deductions
- concealing assets offshore to avoid obligations in Australia
- returning funds to Australian taxpayers in a deceitful manner, including as laundered money.
Concealment is our main concern. A taxpayer may seek to conceal assets and income by setting up a bank account in a secrecy haven where we do not have an agreement to exchange information. Taxpayers may also use an international promoter to set up and manage offshore trusts or companies that seek to conceal the taxpayer's beneficial ownership of assets.
Actions
Action taken against people found to be involved in concealing income, gains or illegal deductions will vary according to the level of their involvement and the nature of the offences committed. It may include all of the following:
- auditing
- amending tax assessments
- applying penalties and interest
- action under the Proceeds of Crime Act
- civil action under tax and corporations law
- criminal prosecution, fines and imprisonment
- banning directors of companies from the financial services industry - where relevant
- restricting departure from Australia.
Relationships
We are also expanding our relationships with tax administrations in other countries.
Through our bilateral tax treaties, we are able to share information on taxpayers suspected of being involved in abusive arrangements.
Tax information exchange agreements
These agreements outline an obligation between Australia and other participating jurisdictions. We agree to help each other by exchanging correct tax information relevant to the administration and enforcement of our respective domestic tax laws - civil and criminal. Under these agreements information is provided only on request - that is, a jurisdiction has no obligation to provide information unless the other party asks for it.
Currently we have signed 28 agreements.
Secrecy jurisdictions
Secrecy jurisdictions are countries with secretive tax or financial systems. They also may have minimal or low taxes for non-residents. The number of secrecy jurisdictions is gradually shrinking but remains a concern. Our focus has been on Vanuatu, Liechtenstein and Switzerland and now includes Panama, Samoa and the Channel Islands.
There are many secrecy jurisdictions of concern on our radar and Australia continues to monitor these.
Results
Project Wickenby is proving to be a significant deterrent against tax crime. So far we have:
- received information on over 32,000 bank accounts
- completed 2,124 audits and reviews and issued 1,911 assessments notices - there have been 23 criminal investigations, with 62 people charged and 18 convicted of serious offences
- witnessed a decline in fund flows of 80% to Liechtenstein, 50% to Vanuatu and 22% to Switzerland where Project Wickenby has had significant focus
- raised over $1 billion in tax liabilities
- collected over $563 million (including approximately $255 million in cash collections from active compliance, a compliance dividend of approximately $306 million and $2.1 million of other moneys recouped).
Messages
It is not illegal for taxpayers to deal with a secrecy haven, provided they comply with the relevant tax laws of both jurisdictions.
We encourage people to come forward and voluntarily disclose unreported income from offshore accounts and activities. Where taxpayers make a voluntary disclosure, they will generally face reduced penalties, provided they come forward before we conduct a review or audit. Generally, there will also be less chance of criminal investigation.
We are always willing to help taxpayers do the right thing. If you are concerned you may be involved in a suspect scheme and would like to discuss your situation with a tax officer, phone us on 1800 306 377.
You can remain anonymous if you prefer.
Last Modified: Friday, 1 July 2011