Sovereign Risk, page-72

What is interesting about the Acacia case, and now Petra Diamonds case is it seems there is a pattern. However, I don’t think it’s the one you’re alluding too.

From all of the evidence we available to us so far, it certainly does appear that Acacia was underreporting their gold ore exports. And the claim against Petra Diamonds is that they were selling uncut diamonds for below market value to reduce their tax bill. And early indicators seem to suggest they were.

The two appear to be exactly the same type of claim, underreporting for tax purposes. To me, this adds weight to the government’s claim they’re cleaning up the industry and corruption was ingrained. Obviously the same corrupt minister who oversaw Acacia would have overseen Petra Diamonds.

Should the corrupt be worried? I’d suggest yes. Should those with a clean nose be worried? I’d suggest no.

They’re not anti-business, they're anti-corruption.

You should think about the large companies operating in Australia and how they flout our local tax laws with impunity, how else do you explain a decreasing corporate tax take timed with record profits and dividends?