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Pipe and Slippers Time directors? Lendlease mute as ATO finalises “double-dipping” ruling

by Michael West | Oct 5, 2022 | What's the scam?

If you are late on a BAS statement, they’ll fine ya, come right after ya, threaten ya, but if it’s a blue chip one billion dollar tax scam, yer in another class, the untouchables, or at least the very-hard-to-touchables, or the touchables-four-years-later. What’s the scam?
The Tax Office has – four years after we first revealed its big retirement village rort – finally finalised its Draft Determination TD2022/14 confirming that you can’t double dip, as stated here:
ATO ruling? Yes.
Meanwhile, Lendlease continues to publicly ignore the ATO and crush the whistleblower, former Lendlease tax adviser Anthony Watson, in the courts (story below). For its part, even though it is probably up for $300m and may have to restate years of statutory financial statements, there has not yet been a squeak from the company in terms of material disclosure.
Lendlease did respond to questions after publication (and frankly we can’t understand what they are talking about but they appear to be living very much in denial if they think this is not about them).

Questions to Lendlease put today. We will revert when the answers come.

1. The ATO’s ruling confirming Lendlease cannot double count its tax deductions has been published.
  • Why hasn’t Lendlease disclosed this information to the market?
  • What is the quantum involved?
  • The ATO must be close to finalising its audit, now that a public statement of the law has been made.  Where is the audit?
  • Is ASIC also investigating your incorrect accounts and disclosure failures?
  • Mr Ullmer has consistently said that Lendlease has followed the 2002 ruling on Retirement Villages.  The ATO clearly says Lendlease has not been following it.  In fact, Lendlease has been ignoring it.
  • Which directors are stepping down?
  • How many years’ accounts will have to be restated?
  • Presumably Lendlease will sue KPMG and PwC.  Have you explored that?

Response from Lend Lease spokesperson

We note the release of the ATO’s Tax Determination (TD) 2022/14.

The TD is not industry specific, and the circumstances contemplated in the TD do not apply to Lendlease’s partial sale of the retirement living business.

Continued commentary about the partial sale of our retirement living business to APG is not founded in fact. 

We’re confident our tax treatment is consistent with the law. And with the ATO’s tax ruling on the retirement living industry. 

We report openly and transparently on our tax affairs, and you can view our latest Tax Report on our website.

Everything to play for: whistleblower’s home on the line as Lendlease makes merry with tax code

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Michael West established Michael West Media in 2016 to focus on journalism of high public interest, particularly the rising power of corporations over democracy. West was formerly a journalist and editor with Fairfax newspapers, a columnist for News Corp and even, once, a stockbroker.

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