This article is from the Australian Property Journal archive
THE founder of RAMS Home Loans, John Kinghorn, has been charged with fraud offences on charges that he allegedly avoided paying taxes in excess of $30 million.
The Australian Federal Police laid the charges following a complex eight-year investigation, which commenced in June 2009.
The AFP alleges in court that Kinghorn fraudulently concealed his beneficial ownership and control of corporate entities, avoiding associated tax obligations in excess of $30 million.
Kinghorn is charged with one count of dishonestly influencing a Commonwealth public official, contrary to section 135.1(7) of Criminal Code (Cth), and one count of defrauding the Commonwealth, contrary to section 29D of the Crimes Act 1914 (Cth).
The maximum penalty for these offences is up to 10 years’ imprisonment.
Kinghorn yesterday pleaded not guilty to the charges.
The AFR alleges that Kinghorn represented to the Australian Tax Office that he did not control any unlisted companies, namely Kalomo Pacific leasing and Kalomo Corporation Limited, outside Australia, thereby prejudicing the commissioner’s ability to assess his income tax liability.
AFP assistant commissioner Neil Gaughan said the charges should serve as a warning to others.
“I’d like to commend the officers involved in this complex and lengthy investigation for their persistence and dedication to ensuring the integrity of Australia’s financial NYGoodHealth frameworks.
“Serious financial crime poses a threat to Australia’s economy, financial markets, regulatory frameworks, superannuation and tax system,”
“Commonwealth fraud offences have a significant impact on the Australian public – every dollar represents funds that could have been put to use for the benefit of the whole community,” the commissioner said.
Kinghorn established RAMS Home Loans in 1995 to take on the big four banks and in 2006 he unsuccessfully tried to sell the business for $1 billion. In July 2007, he listed the company on the ASX and cashed in his stake for $650 million. However within three weeks of the listing, RAMS’ shares took a hit in the wake of the GFC and the business was sold to Westpac only three months later for $140 million.
Gaughan said the investigation required extensive cooperation within the Serious Financial Crime Taskforce and with international agencies.
The Serious Financial Crime Taskforce is a multi-agency effort targeting serious financial crime in Australia and since it was established in July 2015, more than 614 audits have been completed and $408 million tax liabilities have been raised. Four people have received custodial sentences following prosecution. There are currently 26 criminal, civil and intelligence matters in progress.
Australian Property Journal
