Where have all the BRW Turf winners embroiled in tax evasion...

Where have all the BRW

Turf winners embroiled in tax evasion probe
www.theaustralian.news.com.au - Jennifer Sexton - September 8, 2006


Two men who were part of the syndicate that won $9 million from the champion racehorse Northerly were caught up in the Operation Wickenby tax fraud and money-laundering investigation.

Racing enthusiasts and mining entrepreneurs Ron Sayers and Peter Bartlett were questioned over a plot to allegedly protect from tax $32 million raised through listing West Australian mining company Barminco on the Australian Stock Exchange.

Their financial adviser, Greg John Dunn, is under investigation for allegedly underestimating his income and failing to declare millions of dollars held offshore.

Mr Dunn allegedly introduced Mr Sayers and Mr Bartlett, as well as another West Australian mining entrepreneur, Murray Pollock, to the Swiss accounting firm at the centre of the Wickenby investigation, Strachans.

Mr Pollock has been questioned by investigating authorities over allegations he shielded from the Australian Taxation Office $17 million derived from the sale of two companies. Mr Pollock told The Australian last night that Australian Crime Commission law prevented him from discussing the investigation.

Mr Sayers and Mr Bartlett are part owners of Northerly, which in an extraordinary racing career had 19 wins from 37 starts to earn prizemoney of $9.34million and rank as the nation's third-most successful racehorse behind mares Makybe Diva and Sunline.

The pair was questioned by the ACC over allegations they made arrangements for a loan from the offshore company Crossline Overseas that was designed to avoid tax.

Their lawyers, Ben Luscombe of Mallesons Stephen Jacques and Ian Cochrane of Cochrane Lishman, told The Australian last night they believed their clients were no longer persons of interest in the investigation.

"I am satisfied that my clients are not the subject of an ongoing investigation by the Australian Crime Commission," Mr Cochrane said.

Loan documents obtained by The Australian show that Crossline had a $64.8 million mortgage over some of the Barminco assets, the Bartlett Group of companies' assets and the Sayers Group of companies' assets.

Barminco was last year being prepared for listing on the ASX. The ACC and the ATO suspected Mr Sayers and Mr Bartlett stood to make $32.4million from the float, which never went ahead.

Crimefighting authorities believed Mr Dunn set up the Crossline loan, which was signed by Mr Sayers, to look like money raised in the float was in fact owed to Crossline.

They also suspected that Crossline was administered by Strachans on behalf of Mr Bartlett and Mr Sayers, and that the structure was designed to bring money held overseas back into Australia.

Mr Dunn could not be reached for comment last night.