An Australian millionaire who began his entrepreneurial journey promoting rock bands including AC/DC has admitted criminal tax evasion by keeping $18 million in a secret Swiss bank account.
Colin De Lutis, who went on to create a business empire spanning fashion and property, made the stunning admission while giving evidence in a bitterly contested court case over how a $500m fortune should be carved up between him and his brother Paul.
De Lutis recently told the Victorian Supreme Court he used inflated invoices for fabric and Starsky and Hutch-style cardigans to spirit the cash to a bank in Switzerland.
Hong Kong Conduit
He said he initially tried to bring the money back onshore by hiring an accountant and a lawyer in Hong Kong to «create a whole lot of phony transactions», but abandoned the ploy after the pair overcharged him by «an extra $2 to $3 million.»
In 2009, he became desperate to bring the money home because there were «a lot of Swiss bankers who were selling names and addresses to governments around the world, of people who had secret accounts.»
A report in «The Australian» newspaper (behind paywall) said De Lutis eventually declared the money to the Australian Taxation Office (ATO) as part of its amnesty in 2013 and paid $2m in tax.
No Names
De Lutis no longer fears prosecution by the ATO, but Justice James Elliott granted him a certificate against self-incrimination after he told the judge he was worried about pursuit by other agencies.
No Swiss bank was named during the court case, however observers will be watching closely when the case re-convenes on 7 September.
