David Collard’s empire investigated by AFP for alleged $76m ATO swindle
Aussie entrepreneur David Collard’s business is on the brink of collapse as new details emerge of how his empire is being investigated for alleged tax fraud.
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Exclusive: Australia’s financial crime taskforce is looking at whether a high-profile start-up empire dishonestly obtained $76m from the tax office by filing almost 100 allegedly fraudulent business activity statements.
Investigators are also scrutinising whether the problem-plagued Scale Facilitation conglomerate attempted to swindle another $52m from the Australian Taxation Office by filing more allegedly fraudulent statements.
The business is already on the brink of collapse, with millions of dollars owed to unpaid staff and contractors, and a source with knowledge of the investigation said there were concerns it could be embroiled in “the biggest tax fraud in Australian history”.
No charges have been laid and Scale has previously denied any wrongdoing. The company’s founder David Collard and chief of staff James Fatone did not respond to questions, while the Australian Federal Police declined to comment on its investigation.
It can also be revealed that Mr Fatone’s home was raided by the AFP in June as part of a series of co-ordinated searches that centred on Scale’s Geelong offices.
In an email to staff after the raids, Mr Collard said: “I believe the investigation will be dropped once we are given the opportunity to present the complete picture and explain the good intent and how the Australian operations fit into our global structure.”
“Given the global nature of our business, the structure is complex, however, we’ve always sought and followed the best advice from leading firms,” he added.
The multi-agency taskforce is investigating whether Mr Collard and Mr Fatone – as well as their Geelong accountant Chris Scott – were involved in the alleged scheme through 97 business activity statements filed between June 3 last year and January 10 this year.
Mr Scott did not respond to questions.
On January 5, investigators suspect a further 30 business activity statements were filed in an attempt to allegedly fraudulently claim $52m.
Sources with knowledge of the taskforce’s investigation said anyone found to have been involved could also face charges of handling money they believed to be the proceeds of indictable crime totalling at least $10m.
Scale shot to prominence last year when its New York headquarters were opened by Richard Marles and Peter Dutton. The Deputy Prime Minister described Mr Collard as a “force of nature” and the Opposition Leader called him “Superman”.
Corporate records show Mr Collard and Mr Fatone – his childhood friend and a former fish and chip shop owner – became directors of dozens of entities set up over the past two years for research and development, as Scale told clients it could secure government rulings allowing it to claim lucrative tax breaks.
Multiple law enforcement agencies across Australia and New York – where Mr Collard has been based – are also investigating how staff have been left unpaid for months.
In the latest twist, Scale is facing a new lawsuit over its alleged failure to pay $US200,000 ($A314,198) for a sublease on the 88th floor of the One World Trade Center building.
Staff have continued to head for the exits in recent weeks, including Geelong radio personality Roxie Bennett, who was Scale’s head of strategic relationships.
According to LinkedIn, she took a job last month at Lake Advisory, a consulting firm which has launched legal action against Mr Collard’s related SaniteX firm over unpaid bills.
The Victorian Supreme Court will hear their application to wind up the company later this month.
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Originally published as David Collard’s empire investigated by AFP for alleged $76m ATO swindle
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