George Alex behind bars over tax charges
Sydney construction identity George Alex will remain behind
bars over the weekend on charges of leading a criminal syndicate staging an
elaborate $17 million tax fraud scheme.
NSW, Queensland and ACT properties were raided on Tuesday
after an 18-month joint investigation into tax fraud and money laundering by
Australian Federal Police, the Australian Tax Office and corporate regulator
ASIC.
Police have charged 12 people in connection with the crime
group including seven men in Queensland, two men and two women in NSW and an
ACT man.
Alex, 49, and his 22-year-old son Arthur were among those
arrested on the Gold Coast.
He was this week extradited to NSW and faced Sydney's
Downing Centre Local Court on Friday on charges of conspiring to cause loss and
dealing with proceeds of crime exceeding $1 million.
The matter was held over to Monday for a hearing at the same
court, with a bail application flagged by Alex's legal representatives.
He did not apply for bail on Friday and it was formally
refused by magistrate Robert Williams.
It is alleged the Alex-led syndicate used labour-hire and
payroll companies to withhold and launder more than $17 million in owed taxes
though elaborate "phoenix" activity.
This process involves the creation of a new company to
replace a deliberately liquidated debt-ridden business to avoid paying tax,
creditors and employee entitlements.
Federal police say they have seized $21 million worth of
assets connected to the syndicate including 12 properties, 17 vehicles, 65 bank
accounts, a caravan and a boat.
Another $1.3 million in Singapore bank accounts has been
frozen.
"They will deal in anything that makes them money and
they're actively recruiting specialists from the finance, accounting, legal and
banking sectors," AFP investigations commander Kirsty Schofield told
reporters on Wednesday.
"This syndicate specifically included a mix of
financial industry experts to provide the level of expertise required to commit
the fraud and keep it ongoing."
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