The Office of the Commonwealth Director of Public Prosecutions (CDPP) is an independent prosecution service established by the Parliament of Australia to prosecute alleged offences against Commonwealth law, and to deprive offenders of the proceeds and benefits of criminal activity.
This edition we caught up with Commonwealth Director of Public Prosecutions, Chris Craigie S.C. to explore the CDPP's involvement in fighting tax crime.
The CDPP's vision is 'A fair, safe and just society where the laws of the Commonwealth are respected and maintained and there is public confidence in the justice system'. How do you think tax crime impacts on a fair, safe and just society?
While some Australians may not particularly like paying tax, they are generally cooperative, and there is widespread recognition that it is by paying tax that a modern, developed society like ours is able to maintain its high standards of living.
In a number of Project Wickenby prosecutions, the courts have commented that tax fraud erodes what should be an equitable sharing of communal responsibility. For example, during a recent sentencing the Victorian Court of Appeal said '… detecting offending of this kind is not easy and serious tax fraud is offending which affects the whole community. As Ormiston JA recognised in R v Liddell, while the Australian Taxation Office is the ostensible victim, serious tax fraud will inevitably have a flow on effect to the incidence of tax to the honest taxpayer.'
These comments illustrate that tax crime impacts adversely on a fair, safe and just society by enabling a minority to avoid paying their fair share and thereby increasing the load on the majority of the community who do the right thing.
What do you see as the biggest priorities for the CDPP in managing tax crime?
In recent years we have committed to providing specialised support to Project Wickenby by undertaking its prosecution and Proceeds of Crime functions, in particular to counter sophisticated and large-scale tax evasion related to overseas tax havens. The public can be increasingly confident that even the most sophisticated schemes will be detected, prosecuted and punished appropriately.
The prosecution of tax crimes has become complex and time consuming. Cases such as those prosecuted under Project Wickenby often involve evidence obtained from overseas jurisdictions. Because serious matters, including major tax fraud, must be tried before a jury, it is important that the CDPP present cases in simple terms.
Another priority is to bring cases before the courts as quickly as possible and do what we can to ensure they progress without delay.
How does the CDPP work with other agencies?
While the CDPP has traditionally worked with other Commonwealth agencies on an operational level, Project Wickenby has provided an opportunity to work across a number of agencies at a more strategic level.
I have little doubt that Project Wickenby has had a strong impact in deterring potential offenders. The progress should also give millions of honest taxpayers confidence that individuals with sufficient resources and access to skilled professional advice will no longer be able to steal from the community with impunity.
The Commonwealth Organised Crime Response Plan was released late last year. How is your department contributing to the implementation of this plan?
The CDPP recognises that tax offending in some instances overlaps with other criminal activities such as money laundering.
We contribute to the response plan by prosecuting those engaged in organised crime for serious offences that encompass money laundering and tax fraud, as well as by taking action to deprive offenders of the proceeds and benefits of criminal activity.
The recently introduced unexplained wealth regime contained in the Proceeds of Crime Act 2002 targets organised crime. The provisions enable a court to order a person to pay the difference between the value of their total wealth and the sum of all the property the court is satisfied is not derived from criminal activity. This is an important tool for the CDPP to better combat the activities of those engaged in organised crime.
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Last Modified: Tuesday, 20 March 2012