E&Y dragged into Croc Dundee case

Ernst & Young has been dragged into a legal dispute over possible tax evasion by Crocodile Dundee actor Paul Hogan. According to Australian newspaper The Age, Hogan has been accused by the Australian Crime Commission of plotting 'a scheme or conspiracy'- along with his tax adviser Tony Stewart - to avoid paying tax by producing 'sham' travel movements, which allowed money to be paid to the star when he 'was not a tax resident of any country and therefore the payment was free of tax'. The Big Four firm was one of the key advisers Hogan and Stewart turned to for tax and business advice, according to documents released at the order of the Federal Court. Hogan and Stewart have been fighting a joint investigation by the ACC and the Australian Tax Office's high-profile tax fraud and money laundering investigation Operation Wickenby. The Age reports that, in a submission dated 2 December 2007, the ACC wrote: 'The issue is the steps taken by P (Hogan), with the assistance of A3 (Stewart), to misrepresent his tax residency status to authorities in Australia and the United States for the purpose of avoiding (tax) liability.' Both Hogan and Stewart deny any wrong-doing and neither has been charged. An E&Y spokesman told The Age: 'We are confident that all work undertaken by E&Y would not be a matter for Project Wickenby'.
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