Vailo founder Aaron James Hickmann accused in parliament of ‘tax fraud’ on Adelaide 500 eve

A millionaire entrepreneur and the founder of the Adelaide 500’s main sponsor was investigated for tax fraud and benefited from a “questionable” taxpayer tender, MPs have been told.

• Behind the millionaire SA entrepreneur

A millionaire entrepreneur and the founder of the Adelaide 500’s main sponsor was investigated for tax fraud and benefited from a “questionable” taxpayer tender, MPs have been told.

On the eve of SA’s flagship V8 race on Thursday, parliament heard Vailo founder, Aaron James Hickmann, 35, won the naming rights with an “overpaid” state government contract for audio visual equipment.

Under parliamentary privilege, it was alleged Vailo’s motorsport contract was “much more than the market price, which allowed the government to finally secure a naming rights sponsor”.

“The glaring issue is that the secured sponsor funds the sponsorship with an overpaid government contract,” Upper House Liberal MP Ben Hood told MPs late on Wednesday.

Speaking in the Legislative Council, Mr Hood accused the entrepreneur of tax fraud after the Australian Taxation Office, with federal police help, last week raided Vailo’s Adelaide and Queensland offices.

Aaron Hickmann, his wife Maxine, Mareli Visser and Josh Harris at an Adelaide 36ers and Adelaide Lightning MVP Dinner at the Titanium Security Arena. Mr Hickmann denies wrongdoing. Pictured: supplied

Mr Hickmann, who is also embroiled in an unrelated state land tax debt dispute and been accused of failing to pay other business invoices on time, denies wrongdoing.

The father-of-two, now of the Gold Coast, said “unfortunately, this race event has become politically weaponised” and entrepreneurial businesses should act “without fear”.

“I’m proud Vailo has been a part of the return of the Adelaide 500,” he said on Wednesday night.

“We’ve delivered the best visual activation of any motorsport event in Australia, through a competitive tender process. This has enabled us to showcase the event and win projects nationally and globally.”

A SA Motorsport Board spokeswoman added: “The procurement for audio visual equipment was conducted via a tender process in accordance to South Australian government policies.”

Mr Hood claimed the businessman was investigated last year “for fraudulent research and development activities that never occurred” involving “claiming over $1 million in tax rebates” at a failed medicinal cannabis venture, BBS Pharmaceuticals.

In a statement on Wednesday night, Mr Hickmann’s lawyer Greg Griffin said: “Aaron has no liability for or any responsibility for what did or did not occur at BBS. Aaron is the target here because he is successful with assets.

Mr Hickmann, (right) with, from left: V8 driver Nick Percat, Motor Sport Board chief executive Mark Warren and Premier Peter Malinauskas at the Adelaide 500’s official launch in Victoria Square in 2022. Picture: NCA NewsWire / Kelly Barnes

“Those directors of the company that were in control of BBS during the period that any of these ATO issues arose, of which our client had no involvement in, should deal with these issues, not Aaron.” No charges have been laid.

Mr Hickmann, who quit SA this year for Queensland after he founded Valo more than a decade ago in Adelaide, already faces a possible ban from managing a company for up to five years.

Vailo founder and Chief Executive Aaron Hickmann

He was a director of at least two firms placed into liquidation in the past seven years, meaning the Australian Securities and Investments Commission can act.

He has rejected claims any of his businesses are at risk or he faces losing control of Vailo.

Mr Hood told parliament BBS had unpaid superannuation charges totalling $155,656 for nine workers while a creditor is owed $846,343 since 2020.

Mr Griffin said: “Ben Hood … ought to have the courage of his convictions – like his cousin Denis did when making accusations against a prominent citizen some years ago – to leave coward’s castle and have the guts to say what he has to say on the steps on Parliament House where he is not protected from an inevitable defamation suit.”

Vailo Founder Aaron Hickmann inside of his former Wayville business headquarters in January before he left for Queensland. Picture: Ben Clark

An ATO spokesman said the agency can’t comment on individual tax affairs.

But in a statement he said: “The ATO undertakes various compliance approaches to R & D to ensure the ongoing integrity of the program including undertaking risk reviews and audits where claims are found to exhibit risks of non-compliance.”