CANBERRA, Nov. 16 (Xinhua) -- Australia's High Court has ruled that a series of companies with ties to an Australian accountant must pay tax in Australia.
In a unanimous decision, the High Court found that the four companies, Bywater Investments, Chemical Trustee, Derrin Brothers Properties and Hua Wang Bank Berhad, were in the control of Sydney accountant Vanda Gould and thus must pay 12 million U.S. dollars in tax bills.
Gould used a complex structure to give the impression that the companies, which are incorporated in the Cayman Islands, Bahamas and Samoa, were under the control of Swiss-based businessman Peter Borgas and thus did not have to pay tax in Australia.
However, the High Court found that Borgas' role was fake and Gould was actually controlling the companies, a move the court said was "blatant tax evasion."
Chris Jordan, Commissioner of the Australian Taxation Office (ATO), said the ruling was proof that tax cheats would be caught eventually.
"The decision means that any parties who set up complex structures offshore with the clear intent to avoid paying tax in Australia should take a hard look at what they are doing and whether they want to run the risk of being caught and seriously penalized," Jordan said in a statement on Wednesday.
"Today's High Court decision affirms that we will maintain our resolve to pursue blatant cases of tax evasion we can and will catch this type of contrived behavior.
"We will use all our available powers and resources to deal with such schemes and ensure all Australian residents pay the right amount of tax."
Jordan said the case included 19 challenges of evidence procedure at the Federal Court of Australia, followed by an appeal to the High Court.
"This was not an easy process," he said.
"I have made it clear that the ATO will not shy away from difficult and complex cases, no matter how long they take to run, and no matter how many obstacles are put in our way.
"We will not give up and will continue to challenge through the courts if we need to cases where we see corporate entities seeking to game the system."
