Queensland mining identity Tom Peever and wife Kirsten linked by ATO to ‘false mining operation’

The ATO alleges a Queensland couple embroiled in a fake mining operation owes hundreds of millions of dollars. Court documents delve into IVF, a Mercedes Benz and a Broadbeach property.

The Australian Taxation Office alleges Tom Peever and wife Kirsten have falsely made claims against a fake mining operation.

Queenslander Tom Peever, described as a mining magnate, and his wife Kirsten Peever, have had a dream life.

Luxury cars, apartments, and jewellery were all spoils from apparent successful mining deals orchestrated by Mr Peever, including via his Elution Metals.

But a secret investigation has levelled remarkable allegations against Mr Peever. Chiefly, that he ran a fake mining operation which acquired pretend assets and falsely claimed GST refunds that left him, his wife and their companies in debt to the tax office by more than $200m.

The Australian Taxation Office obtained ex-parte freezing orders against the pair in December from the Federal Court, off the back of concerns they might flee to Papua New Guinea if they learnt about the ATO probe and its bid to secure their assets.

A Mercedes-Benz GLE coupe

The ATO’s legal submissions can be revealed for the first time.

A Mercedes Benz worth $178,000, multimillion-dollar properties on the Gold Coast’s Broadbeach and Brisbane’s Pullenvale, a CommSec trading account, and money on deposit are all frozen by court order.

And despite a number of media reports detailing the Peevers’s luxurious property portfolio, there is virtually no trace of either of them – not pictures nor social media accounts – online.

Mr and Mrs Peever, and their lawyers, were contacted on Friday by The Australian with a detailed list of questions but they did not respond.

The ATO believed the couple were living off dividends and rental income from the money they allegedly fraudulently obtained from GST and research and development refunds.

The ATO alleged a web of just under 30 companies, including Elution Metals, falsely claimed GST credits worth about $76m between 2018 and 2022 and research and development credits worth about $22m for 2020 and 2021, according to the submissions seen by The Australian.

“To date, Mr and Mrs Peever appear to continue to be using the assets purchased with the GST refunds and R&D offsets received by the company taxpayers, as well as rent and dividends from these assets, for their personal expenses and lifestyle, including credit cards, house renovations, jewellery, travel, alcohol, and art,” the ATO submissions read.

The couple is understood to have property on the Gold Coast’s Broadbeach.

The ATO submitted that the falsely claimed GST refunds and refundable R&D offsets rest on equally false claims that creditable acquisitions of $700 million occurred.

“Mr Peever being the directing mind of the company taxpayers would have been aware of these false claim,” the ATO stated.

The Peevers have not yet lodged a defence, but the ATO noted the Elution companies “engaged with the Commissioner in the course of the review of their R&D tax offset claims and partly reduced those claims during the review”.

It was also noted that the parties had a series of without prejudice discussions in 2023.

“The taxpayers have lodged objections in relation to the various assessments … by which they challenge their liability to the entirety of the relevant tax-related liabilities and, in the case of the company taxpayers, contend that they were carrying on enterprises,” the ATO said. Mrs Peever and some of the companies have co-operated with the ATO.

As well, the ATO said two of the Elution companies were found to be entitled to a small portion of the R&D offsets they claimed.

ATO allegation against Tom Peever

That being so, Mr Peever “falsely contended” that the so-called company taxpayers — including Elution Metals — were in the business of mining, the ATO claimed.

“He entered into milestone agreements and loan agreements (agreements which were witnessed by Mrs Peever) that the Commissioner considers were contrived and non-commercial,” the ATO alleged.

Later, the ATO repeats the allegation a fake mining business was orchestrated.

They “purported to operate a mining operation which the Commissioner contends was false”.

“The asset entities do not appear to operate a business other than the holding of shares and real property funded by the falsely claimed GST refunds and R&D offsets,” the ATO alleged.

“In circumstances where there is no apparent bona fide business being operated, it would be inappropriate to provide for such an exception.”

A Pullenvale property in Queensland linked to the couple.

And in another part of the submission, the ATO said: “There was no evidence to support the propositions that the company taxpayers were carrying on a business of the nature claimed, made the acquisitions they claimed to have made, or any acquisitions connected to the enterprise they claimed to be conducting,” it alleged.

Tom Peever’s businesses

Mr Peever has a “history” of taking steps to disentangle himself from companies including when he divested himself of all of his shareholdings in the web of companies and transferred them to Mrs Peever, the ATO alleged.

While the ATO got some money back via garnishee orders, the tax authority alleged the Peevers spent $340,000 including on IVF treatment.

“See for example, the dissipation of approximately $340,000 being dividends, rental income, and proceeds from the sale of a Mercedes Benz … which funds were used for various personal expenses (including IVF/medical expenses),” the submissions said.

The ATO also alleged they drew $64,500 in cash, spent more than $100,000 in legal fees and “substantial property expenses and renovations”.

“The Commissioner is concerned that once the individual taxpayers are aware that they and the company taxpayers are potentially insolvent and facing bankruptcy and liquidation, they may take steps to dissipate assets,” it said.

The tax office told the court Mr and Mrs Peever could flee the country if they were alerted to the freezing application.

“Mr Peever has previously lived and worked in PNG between 2013 and 2016. Mr Peever has travelled to PNG twice since later 2023, being on 26 November 2023 for a day and again on 31 December 2023 to 5 January 2024,” the ATO’s submitted.

“The Commissioner holds concerns that there is a risk that Mr and Mrs Peever and their family will attempt to move to PNG.”

Court freezing orders over the Peevers

In December, the Federal Court froze $16.9m of Mrs Peever’s assets, noting the ATO said it already garnished about $5m from her and she granted them security over two properties worth $8.3m.

The court froze $36.8m of Mr Peever’s assets, which is the remainder of $51m worth of director penalty notices minus the value of security obtained by the ATO of $14.2m.

As well, the court froze about $200m worth of assets relating to the Peever Family Office, PVR Mineralogy and Corporate, Orchid Blaze plus 29 other companies that have variations of the names Elution Metals, Araucana, Mount Hood, Malworth Metals and Huntingdale Metals.

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Originally published as Queensland mining identity Tom Peever and wife Kirsten linked by ATO to ‘false mining operation’