Big four ex-partner claims colleagues helped in tax exploitation scheme
A former big four accounting partner being sued for allegedly promoting tax exploitation schemes will claim others at his firm were involved in the drafting and review of documents.
The ex-partner also wants to file a limited defence to the Tax Office’s claims because he may incriminate himself and open himself up to penalties, according to an application made to the Federal Court by his legal team.
Last week, The Australian Financial Review revealed that the commissioner of Taxation was suing the ex-partner in the Federal Court, alleging that he promoted three so-called Tax Loss Access Schemes to seven clients between November 2016 and April 2021.
The partner has applied for his name and the names of his former firm and clients to be suppressed, on the basis that he would be embarrassed and distressed if he were identified. Although that application was rejected in the first instance following opposition from theFinancial Review and the commissioner, the partner is now seeking leave to appeal.
Following last week’s story, Greens senator Barbara Pocock sent a list of 17 questions to each of the big four firms. Two replied within a day that it was not their firm. However, the suppression order prevents the Financial Review from naming the firms that have denied that they employed the partner. The firm involved cannot reply because it would be in breach of the suppression orders by identifying itself.
The commissioner is seeking declarations of breaches and substantial fines. The maximum fine for an individual found to promote a tax exploitation scheme is the greater of $1.5 million, or twice the benefits obtained, for each year.
In a redacted draft defence, the partner’s lawyers said they might rely on the “involvement of
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