Taxation

LAC Lawyers is available to offer sound advice in a wide range of taxation matters. 

Who are our clients?

Predominantly we are retained to act on behalf of taxpayers directly or through accountants, financial planners or other lawyers.  Essentially our clients are made up of high net-worth individuals who exhibit raw enthusiasm and energy for business and/or a commitment to their profession.  Most are self-made businessmen and women who have excelled in their career choice starting out in business on their own approximately 20-25 years ago.  Over time with raw determination and commitment they have risen to the top of their businesses and are prominent individuals who are well-known within their industry or industry group and in some cases dominate it.

Early in their careers after both their companies and themselves have started to make substantial income they have sought ways to minimise their tax.  Unfortunately for a number of them they have been poorly advised and have been introduced to promoter-driven schemes where the promoters are paid consultancy fees and perhaps trailing commissions to access these arrangements.  Where promoters are involved income can either be diverted overseas to a tax haven or alternatively money is sent from Australia to a tax haven where it does a round robin and comes back to the taxpayer and/or their company dressed up as a loan on which the taxpayer then pays interest and in some cases in an attempt to legitimise it PAYG withholding tax is paid.  Debit cards are used for daily drawdowns to keep moneyflows under the Austrac radar. Obviously companies and/or trusts are involved in an attempt to make transactions look real and they are given impressive names and addresses to underscore legitimacy.

Over a period of years the taxpayer is able to avoid paying substantial sums of money which runs into millions or tens of millions of dollars.  Eventually they come to the attention of the ATO (Australian Taxation Office) through a number of mechanisms including Austrac which tracks money flows in and out of Australia.  Of course all financial transactions are receiving greater attention today due to money laundering and heightened sensitivity to terrorist attack.  Moneyflows of as little of $10,000 per day are noted, tracked and scrutinised. Often where something is askance the matter is referred to the AFP (Australian Federal Police) for secret investigation prior to the ATO contacting the taxpayer.  Substantial intelligence has been gained before this occurs.  

What happens when they are detected?

Given the amount of publicity in recent years given to promoters and the need for the Commonwealth to protect the revenue the ATO has firmly focussed on the distinction between tax avoidance and tax evasion.  Project Wickenby is a response to a change in dynamics out of which came Operation Wickenby which centred on Phillip Egglishaw of Strachans.  Often taxpayers are detected through any number of processes including a simple request, enquiry, field audit, review or business review, investigation or audit.  Clients come to or are referred to us at any of these stages even where debt recovery proceedings are imminent.  Apart from these in-system taxpayers we have clients where we become aware that their tax affairs are not compliant and they need to make a voluntary disclosure as there is absolutely no doubt that their level of tax non-compliance will eventually be detected and if so they run the real risk of being prosecuted and going to gaol for substantial periods of time depending upon the nature of the offences committed.  Conspicuous consumption, low salaries, substantial assets, exotic cars, expensive holidays, expensive homes, children at the best private schools and substantial business and other overseas dealings are what the ATO is targeting amongst other things.

Why do they come to us?

Taxpayers and/or their representatives come to us as we are totally independent and do not involve ourselves in conflicts of interest.  Our approach is to do the best we can for any client given their circumstances and the level of their tax non-compliance.  Although some taxpayers may obtain the benefit of a full voluntary disclosure there are many more who need other forms of assistance.  In us they find strong, dedicated, sensible advisers who recognise the reality of their predicament and who are able to advise accordingly.  Often they are advised to hang tough, ignore the ATO, litigate or where criminal prosecution has commenced, fight it by relying on reasonable doubt to avoid gaol.  Bad advice, a fee-fest and today this approach will in most cases lead to a lengthy gaol term.   Why, because in many of the matters referred to us there is no underlying tax rationale and therefore a proper course of action needs to be chartered which will allow the taxpayer to overcome their tax non-compliance whilst at the same time restricting penalties and interest.  It is often embarrassing to note that there are any number of so-called tax professionals who provide the type of advice noted above which is not sensible and bad in law whilst raising false hope in their client's minds committing them to a course of action which in many instances leads to prosecution and substantial prison terms. 

Everyone acknowledges that this work is high risk and therefore expensive as it requires the application of substantial skill, knowledge and expertise covering many aspects of the civil and criminal law.  Although the accounting profession and financial advisers may provide some level of tax planning advice, they are not entitled to advise on any aspect of the criminal law.  In addition although there are a number of lawyers who advise on tax matters there are very few who also possess the in-house capability to advise on the criminal consequences of tax non-compliance.  What most taxpayers fail to understand is that where they have entered into schemes of arrangement which are nothing more than shams and they rely upon these fictions to claim fictitious deductions they are involved in tax fraud which is a criminal activity which, when prosecuted will lead to substantial gaol terms.  Put simply, the mere existence of a notional offshore structure/s does not legitimate someone's tax affairs irrespective of the identity of their tax adviser or scheme promoter.

Whenever a taxpayer, their accountant or financial planner is approached or receives any form of communication from the ATO or any other authority about any of their taxation affairs other than compliance matters call LAC Lawyers for effective legal representation whether it involves CGT, GST, FBT, Income Tax, LCT, SGL and the application of GIC (general interest charge).  This area of the law is extremely complex and requires the attention of legal advisers who can offer sound advice encompassing  the criminal law which we do.  We are at the cutting edge in this field and are able to draw upon our experience and the resources of some of Australia's leading tax barristers.

What areas do we service?

We offer comprehensive advice covering:

• All Taxes
• Audits;
• Compulsory examination;
• Criminal Prosecution;
• Deemed Dividends;
• Exercise of coercive powers;
• Failure to lodge tax returns whether business or personal;
• Falsifying Documents;
• Fictitious transactions;
• Improperly claimed deductions;
• Indemnity from Prosecution;
• Land Tax;
• Loss of Documents;
• Money Laundering;
• Negotiations with the Australian Taxation Office (ATO);
• Offshore and Onshore Structures;
• Omitted Income;
• Overseas Loans;
• Payroll Tax;
• Proceeds of Crime;
• Promoters and Sub-Promoters;
• Recoveries;
• Referrals to the Commonwealth Director of Public Prosecutions;
• Search Warrants;
• Tax and other penalties;
• Tax Avoidance;
• Tax Evasion;
• Tax Fraud;
• Tax Havens;
• Tax Non-Compliance;
• Tax requests, enquiries, field audits, reviews, investigations and audits;
• Voluntary Disclosure;
• Wickenby-type matters.

Contact us now for Fast, Accurate and Timely legal advice

Phone LAC Lawyers on NSW 1300 799 888 or VIC 1300 734 638 or send us an email