Targeted strike to illicit tobacco trade
Australian Taxation Office
This is a joint media release between Victoria Police and the ATO.
A joint operation between the Australian Taxation Office (ATO) and Victoria Police has resulted in the seizure of over 18,000 illicit cigarettes and approximately $100,000 in cash from residential properties and a retail store in Melbourne.
Last week, search warrants were executed at two residential properties in Altona North and a retail store in Hoppers Crossing. Officers seized 18,700 illicit cigarettes and 5kg of loose-leaf illicit tobacco, with the combined excise forgone being over $40,000. Also located during the warrants was approximately $100,000 in cash, as well as numerous devices and equipment believed to be used in facilitating the illicit tobacco trade.
This targeted action, codenamed Operation Beach, has already resulted in the destruction of illicit tobacco crops earlier this year with an excise foregone value of almost $40 million.
ATO Assistant Commissioner, Jade Hawkins said these results should serve as a stern warning for retailers choosing to become involved in the sale of illicit tobacco.
‘We have the capabilities and resources to detect and disrupt illicit tobacco operations, and we are committed to ensuring those responsible face the full consequences,’ Ms Hawkins said.
Retailers choosing to become involved in the sale of illicit tobacco gain an unfair price advantage over honest businesses who are doing the right thing. They may also face hefty penalties for selling, buying, or producing illicit tobacco, including jail terms for up to 10 years imprisonment.
‘The illicit tobacco market is often run by criminal syndicates, with the profits used to support other criminal activities. It also takes money away from funding essential community services like schools, roads and hospitals,’ Ms Hawkins said.
Detective Inspector Anthony Gasparini, VIPER Taskforce, reiterated their commitment to tackling illicit tobacco.
‘We have made it clear that we will target anyone at any level across the state who is involved in the distribution and sale of illicit tobacco,’ Mr Gasparini said.
‘We are doing absolutely everything we can to target syndicate leaders, directors, facilitators and organisers responsible for this criminal offending to make involvement in illicit tobacco as unattractive a proposition as possible.’
‘Disrupting these syndicates and putting a stop to their criminality remains a priority for Victoria Police and it is critical that we continue to work with our law enforcement partners including the ATO on this.’
Community tip-offs are one of our best sources of information when it comes to letting us know about tax avoidance and other dishonest behaviours.
If you suspect that illicit tobacco is being grown, manufactured or sold in your community you can confidentially report it to the ATO online at http://www.ato.gov.au/tipoff, or phone 1800 060 062.
Visit ato.gov.au/illicittobacco for information to learn more about the signs of tobacco plants and what to look out for in your community.
ENDS
Notes to journalists
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Images from the warrant activity:
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Assistant Commissioner Jade Hawkins is available for interviews on request.
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A high-resolution headshot of Assistant Commissioner Jade Hawkins is available for download from our media centre.
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ATO stock footage and images are available for use in news bulletins from our media centre.
Contact details:
[email protected] | 02 6216 1901