The HBS, the world’s biggest private research firm, has been caught cheating the Australian taxman out of millions of dollars in tax by falsely claiming it is a gaming industry group.
The firm also stole more than $5 million from the Australian taxpayers through fraudulently claiming that it was a research institute.
The ABC has obtained a damning report by a parliamentary committee which reveals how the firm operated as a criminal racket.
One of the report’s key findings is that HBS used tax-avoidance schemes to avoid paying taxes on its profits.
It’s not just a case of hoovering up money.
It is a serious matter, and the committee says HBS is responsible for the widespread tax evasion in Australia.
“The HBS has repeatedly demonstrated to be an organised and sophisticated criminal enterprise with a large network of tax cheats and crooks,” Senator Scott Ludlam said.
Tax authorities are looking at HBS in a number of ways, including its tax affairs and its dealings with multinationals.
There’s also a tax investigation into whether the firm paid more than its fair share of tax in Australia to foreign governments and multinationals that were not taxed on their profits in Australia and in a jurisdiction.
It’s not clear what, if any, penalties HBS may face in the future.
But it’s likely to become a topic of conversation in the coming months and years in Canberra.
For more information about the report and the report authors, visit the ABC’s website.
ABS is the publisher of the ABC News website.
Topics:business-economics-and-finance,business-administration,tax,government-and,banking,government—organisations,australia,canberra-2600,act,franceMore stories from Australia