Former Nudie juice boss Andrew Binetter fights tax scam allegations

THE former boss of Nudie Juice Andrew Binetter is embroiled in a court battle over allegations that his family ran a $100 million tax scam.

THE former boss of Nudie Juice Andrew Binetter is defending allegations that members of his family ran a tax scam to the tune of almost $100 million.

Mr Binetter ran the company that transformed Australian tastes by introducing unconventional blends such as strawberry and banana into a market dominated by juices made from concentrates.

But his legacy could be marred if the Australian Taxation Office proves its claim that the company was part of an elaborate tax evasion strategy allegedly employed by the Binetter family and an Israeli bank.

In a case that emerged from investigations during the now-defunct Project Wickenby, the ATO alleges that murky funds were channelled into businesses including Nudie, after being hidden in Swiss and Israeli bank accounts, The Australian reports.

The Federal Court will hear allegations that the family disguised millions of dollars as loans in an alleged tax evasion strategy, in a court case beginning today.

United States authorities are understood to be investigating Israeli banks over their role in similar schemes.

The ATO alleges that the Binetters brought about $20 million into Australia between May 2006 and January 2009, claiming it was borrowed from Bank Hapoalim or Bank Leumi.

It is alleged that the family claimed tax deductions on the interest it paid on the loans, which allegedly matched with the interest paid to offshore accounts held by the family.

The family denies all claims.

In February, Philippines-based multinational food giant Monde Nissin bought Nudie, which holds a 29 per cent share in the Australian juice market, for $80 million.

But much of the proceeds have been frozen by the Federal Court until the tax dispute has been finalised.

Separate legal action taken by the ATO against Nudie in 2009 was dropped, after the tax office abandoned claims that the company had failed to lodge four years’ worth of income tax returns.

Nudie’s lawyer at the time, Mark Douglas of Argyle Lawyers, said at the time that the ATO had made a mistake due to a system failure, and expressed concern that the court matter would damage Nudie’s reputation.

“The Australian public takes a dim view of companies that are seen not to be completing their tax and Nudie would not like to be seen like this in the public arena,” Mr Douglas said at the time.

Read more in The Australian.

Originally published as Former Nudie juice boss Andrew Binetter fights tax scam allegations