A haul of illicit tobacco worth more than $3M was seized at Peats Ridge in April and destroyed in a major operation by the Australian Taxation Office (ATO).
The crop was among $171M worth of tobacco seized nationwide during the 2019-20 financial year by the Illicit Tobacco Taskforce (ITTF) working with assistance from police in all states and Australian Border Force.
The ITTF was established in 2018 to investigate, prosecute and dismantle organised crime groups which use the proceeds of illicit tobacco to fund other criminal activity, as well as ensure the appropriate revenue is paid to the Australian Government.
ATO officers executed 19 search warrants and uncovered more than 184 acres of illicit tobacco growing in hot spots across regional NSW, Victoria and Queensland.
The Peats Ridge crop was 13.2 acres in size and yielded 2400kg of tobacco worth around $3.1M.
Assistant Commissioner, Ian Read, said the ATO was committed to disrupting organised crime syndicates that produce and supply illegal tobacco for sale on the black market in Australia, resulting in lost excise.
“The trade in illicit tobacco products in Australia has widespread negative consequences across the community,” Read said.
“Tobacco growing operations are not run by small producers or farmers.
“They are run by organised crime syndicates who deliberately engage in illegal activities to fund their extravagant lifestyles and other criminal activity.
“We’re finding crops in regional and remote areas of the country, being grown on land being leased from unsuspecting owners under the guise of growing vegetables.”
Read said tip-offs from members of the public were hugely valuable in locating illegal crops.
Signs to look out for include intense labour production between November and May, suspicious enquiries about land for lease, unexplained use of water resources and large crops of leafy plants that may resemble kale, cabbage or corn.
“Public tip-offs build on the intelligence we gather from a range of sources and help us to identify, seize and destroy these illicit crops before they are harvested and sold on the black market,” Read said.
Australian Border Force Special Investigations Commander, Greg Linsdell, said the ITTF is dedicated to disrupting the supply of illicit tobacco and had seized more than 75 tonnes of smuggled tobacco and approximately 361 million smuggled cigarettes to June 30 this year.
“This is equivalent to over $399M in evaded duty,” he said.
“Illicit tobacco costs the Australian community $647M in lost revenue each year; it takes vital money away from the community.”
NSW Police Force State Crime Commander, Assistant Commissioner, Stuart Smith, said it has been illegal to grow tobacco in Australia for more than a decade. .
“If convicted, growing tobacco carries a maximum penalty of up to 10 years’ imprisonment,” he said.
If you suspect that illegal tobacco is being grown or manufactured in your community you can confidentially report it online at ato.gov.au/illicittobacco or by calling 1800 060 062.
Source:
Media release, Jul 20
Australian Taxation Office