By Steve Butcher
A luxury Melbourne menswear retailer has pleaded guilty to understating by $1.4 million the value of imported European clothing to reduce the customs duty payable on the goods.
John Poulakis' Harrolds department stores include an outlet in Collins Street, a boutique store at the Crown complex and stores in Sydney.
Harrolds founder John Poulakis.Credit: Estelle Judah
Melbourne Magistrates Court heard that Poulakis' scheme involved one to "systematically understate" the value of imported goods, mostly brands from Italy and France.
He faced on Monday a five-day contested committal hearing which ended when 100 charges were withdrawn by prosecutor Andrew Buckland who then substituted them with two offences.
These offences were committed between March 2002 and May 2003 and July 2003 and February 2006 and each carry maximum sentences of five years jail.
In a prosecution summary, Poulakis' role in the business, which he ran with his brother, was managing the day to day operations of the stores and the head office in Flinders Lane, Melbourne.
The summary said part of the scheme involved a company Poulakis established in Greece whose apparent purpose was to be the purported "buying agent and supplier of goods" to another company.
Police executed search warrants in October 2006 at Poulakis' home and head office among other places.
Magistrate Brian Clifford bailed him with conditions he live at an address in Coburg and notify authorities within 24 hours of any planned overseas trip.
Poulakis will appear in the County Court in November.