Tom Minear, National Political Reporter
February 15, 2018
Herald Sun
ILLICIT tobacco growers are facing longer jail terms and harsher fines under a Turnbull Government crackdown.
A suite of tough new laws will be unveiled today.
Almost 120 tonnes of illicit tobacco was seized and destroyed by the Australian Taxation Office in the last 18 months.
Revenue and Financial Services Minister Kelly O’Dwyer said the seized tobacco would have raised $91 million in excise duties if produced legally.
The new laws will increase the maximum jail term for excise offences from two to 10 years. The maximum fine of $105,000 will rise to $315,000.
“Those who deal in illicit tobacco threaten Australia’s revenue base, cheating our community of valuable tax dollars,” Ms O’Dwyer said.
Police and ATO officials executed a search warrant at a property in the Monaro region in March 2017. Officers allegedly located more than 92,000 tobacco plants as well as more than two tonnes of tobacco leaves.
She said the crackdown would “make it easier for our enforcement agencies to do their job”.
Investigators will no longer need to prove whether illicit tobacco was grown domestically or imported before applying the offences.
The ATO has carried out 16 probes of illicit tobacco growers since July 2016.
Two operations in May last year, where the ATO was supported by Victoria Police, saw 10 hectares of tobacco crops in Euroa and Yarroweyah destroyed.
They had a total excise value of $10 million
About 15 illicit tobacco cases are due in court or facing prosecution.
Four people have been committed to stand trial in April on tobacco-related charged by the ATO, and a further six cases are being currently considered by the Commonwealth Director of Public Prosecutions.
Another eight investigations — with an estimated excise value of $50 million — are continuing, seven of which will be submitted to the CDPP next month to see whether charges should be laid.
The government’s new laws, to be considered by the House of Representatives, will expand excise offences to cover the importation, possession, production and sale of illicit tobacco, with new offences targeting the possession of equipment used in growing it.
Subscribe to our free mailing list and always be the first to receive the latest news and updates.