Tax Office Tracks Tobacco Crop

AN operation by the Australian Taxation Office (ATO) last Wednesday 14 March netted a tobacco crop that had been flourishing in the paddocks beside the Castlereagh River a few kilometres south of Coonamble.
ATO officers seized illegal tobacco worth an estimated $13 million from two raids in Dubbo and Coonamble on the same day. The search warrants were conducted with the assistance of New South Wales police.
 The ATO is responsible for managing the risk associated with illegal tobacco products grown or manufactured within Australia. Involvement in domestic illegal tobacco production is a serious offence.
“This type of activity takes valuable government revenue from the community and places it in the hands of organised syndicates,” Assistant Commissioner Peter Vujanic said.
Over 7,000 kg of illegal tobacco plants and more than 500 kilograms of dried tobacco bales was seized from the two properties and destroyed.
Three tractors valued at nearly $100,000 in total and a range of equipment, including kilns and drying machines were also seized.
The tobacco was growing in two sections covering about 10acres on the property ‘Wilga Glen’ which is part of the Castlereagh Regional Halal Abattoir.
It is estimated that the crop had been planted in the period since August 2017. The mature tobacco plants, which stood up to 2 metres tall, were removed by slashing and will be sprayed.
The growers had established an extensive drip irrigation system using a spear in the Castlereagh River. It is not clear whether the the spear was licensed and it seems likely that there has been significant amount of unauthorised water taken from the system.
“The crop was discovered following a tip off from local police,” Mr Vujanic said. “This demonstrates the value of cross-agency collaboration in detecting and dealing with offenders.”
Witnesses to the raid on Wednesday reported a brief police chase of a vehicle with two occupants which drove out of the Abattoir Road. THE silver SUV proceeded through Coonamble and was said to have initially avoided police by hiding in the Tyreright driveway.
It is not yet known if anyone was apprehended.
One of the group of owners of the Abattoir, Kassem Sheeth told the Coonamble Times that his partners had leased the land to a third party and that on hearing of the raid they provided a copy of the lease documents and other information to Police.
As well as the activity last Wednesday, the ATO has advised that there have been 20 investigations since June 2016 that have resulted in the seizure of illegal tobacco worth an estimated $114 million of unpaid excise.
Growing tobacco without an excise licence has been illegal in Australia for more than a decade and there is no legal avenue for Australian grown tobacco to be manufactured and sold.
“The ATO takes the detection and prosecution of illegal tobacco growers very seriously to help protect the community from the domestic illegal tobacco trade,” Mr Vujanic said.
“While our intelligence is very good, the community is a valuable source of information for us in combatting illegal tobacco trade, and they should remain vigilant for any signs of illegal activity,” he said.
“Our investigations are ongoing.”