AAP General News (Australia)
02-17-2006
Fed: Costello backs prosecution of AWB if bribes were paid
SYDNEY, Feb 17
AAP – Treasurer Peter Costello has supported the prosecution of
AWB
executives if they were found guilty of claiming kickbacks to Iraq as a tax deduction.
But he said today that if the payments were to a transport company for the transportation
of wheat then
AWB was entitled to tax deductions.
The Australian Tax Office is investigating following evidence yesterday to the Cole
inquiry that the wheat exporter had claimed the kickbacks as a tax deduction.
The Cole commission is investigating allegations that
AWB paid $300 million in kickbacks
to Saddam Hussein’s Iraqi regime under the corrupt UN oil-for-food program.
“If it was paying a transport company to transport wheat it would be tax deductible,
of course it would be,” Mr Costello told
ABC radio.
“If the commissioner says that wasn’t a transport fee, that was a bribe, if he says
that, then not only are you up for possible prosecution for bribes, but you can’t claim
it as a tax deduction either.
“If a company has paid bribes and if a company has circumvented the United Nations
oil-for-oil program, that’s a disgrace.
“And if the findings are that there’s a basis for prosecution, yes, I think they should
be prosecuted with the full vigour of the law.”
Mr Costello also said the
AWB’s chairman must be part of a delegation to Baghdad to
salvage Australian wheat exports to Iraq because the monopoly distributor owns Australian
wheat.
AWB chairman Brendan Stewart will be part of a delegation led by Trade Minister Mark
Vaile to Iraq next week in an attempt to talk authorities into lifting their ban on dealing
with the wheat exporter.
“He’s included because he’s the chairman of the company that’s got the wheat,” Mr Costello said.
Asked if Mr Stewart would be travelling to Iraq Mr Costello relied, “Yep”.
Mr Costello said the Cole inquiry was aimed at uncovering any wrongdoing.
“That’s why you have a royal commissioner and a royal commissioner is uncovering all
of this, and when the royal commissioner reports … if anybody’s done anything wrong
then they’re in big trouble,” Mr Costello said.
The Iraq Grain Board (
IGB) suspended dealings with
AWB – locking Australian farmers
out of a one million-tonne tender – pending the outcome of the Cole inquiry.
The opposition has criticised Mr Stewart’s inclusion, saying sending him is like sending
the burglar back to change the locks.
Prime Minister John Howard has also insisted that
AWB must be included in the delegation
because it owns the Australian wheat.
AAP dmc/tam/jt/de
KEYWORD: AWB COSTELLO
2006 AAP Information Services Pty Limited (AAP) or its Licensors.
Posted 1st March by Anna83zp
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AWB may have got $90m in tax breaks
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February 17, 2006 – 6:59PM
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Wheat exporter AWB may have claimed up to $90 million in tax deductions for its kickbacks to Saddam Hussein’s regime.
And the company also wrote off on tax a $US7 million ($A9.5 million) debt it retrieved from the Iraqi government for a BHP-related company, the Cole commission of inquiry heard.
The new evidence about the wheat exporter’s dubious accounting practices follows Thursday’s revelation that AWB claimed as tax write-offs much of the $300 million in kickbacks it paid to the former Iraqi dictator’s regime.
Labor says the write-offs could be worth up to $90 million on corporate rates and has called for an immediate tax audit of AWB’s books.
Treasurer Peter Costello says AWB must face penalties if the Cole inquiry finds that the fees it paid to transport companies and wrote off on tax were actually kickbacks to Saddam.
“If it was paying a transport company to transport wheat it would be tax deductible, of course it would be,” Mr Costello told ABC radio.
“If the commissioner says that wasn’t a transport fee, that was a bribe, if he says that, then not only are you up for possible prosecution for bribes, but you can’t claim it as a tax deduction either.
“If a company has paid bribes and if a company has circumvented the United Nations oil-for-oil program, that’s a disgrace.
“And if the findings are that there’s a basis for prosecution, yes, I think they should be prosecuted with the full vigour of the law.”
Labor’s revenue spokesman Joel Fitzgibbon said tax commissioner Michael D’Ascenzo must immediately audit AWB’s books to ensure they had not broken any laws.
Mr Fitzgibbon also called for the tax act and the criminal code to be amended to ensure taxpayers were never caught in the same position again.
“What we are calling from the government at the very least is to align the criminal code and the tax act so we get a clear definition of what is and what isn’t a facilitation payment,” Mr Fitzgibbon told reporters.
“Certainly the $300 million payment to Saddam’s regime should not be a facilitation payment and certainly should not be subsidised by the Australian taxpayer.”
Foreign Minister Alexander Downer said he had no knowledge of AWB’s tax arrangements.
“Surely they didn’t put in their tax returns ‘kickbacks’ and claim a deduction and the tax office said ‘well look, that’s fine’,” he told ABC TV.
Meanwhile, Australian Federal Police (AFP) Commissioner Mick Keelty said his officers were ready to investigate whether AWB had broken any domestic laws.
“We have been liaising with the Cole inquiry and we are awaiting any referral from the Cole inquiry,” Mr Keelty told a Senate estimates committee.
“In order to maintain the integrity of investigation that may have to take place, it’s probably appropriate that we say little more than that.”
Justice Minister Chris Ellison said that was standard procedure with past inquiries and royal commissions.
© 2006 AAP
http://www.smh.com.au/news/breaking-news/awb-may-have-got-90m-in-tax-breaks/2006/02/17/1140151806594.html