Tax Office clamp on Karas extended

A $44 million Tax Office clamp on the assets of the alleged money launderer Tom Karas has been extended indefinitely.

By InvestSMART · 30 Jul 2011

By InvestSMART ·
30 Jul 2011

Comments

A $44 million Tax Office clamp on the assets of the alleged money launderer Tom Karas has been extended indefinitely.

Mr Karas, of Fitzroy, is a key target of a joint operation between the Australian Taxation Office and Victoria Police's Purana taskforce, investigating people who have benefited from organised crime in Melbourne. Police have previously alleged Mr Karas and his wife laundered money on behalf of a convicted drug baron, Horty Mokbel.

The freeze order over Mr Karas's assets, first granted last month, was extended by Judge Jennifer Davies, of the Supreme Court, on Thursday morning.

The Tax Office's counsel, Stephen Linden, told the court the Australian Taxation Office lodged a writ last week demanding that Mr Karas pay tax bills stretching back to 2003, worth $44 million, including interest and penalties. The Australian Taxation Office had not been able to serve the writ "as yet", he said. In an affidavit, Mr Karas said the Australian Taxation Office had already cleaned out three National Australia Bank accounts frozen by a Supreme Court order last month.

He said that in addition to heavily mortgaged development property in Fitzroy, his assets included $153,000 in an ANZ account belonging to one of his companies, Capital One Securities, and a $600,000 superannuation fund belonging to him and his wife, Irene Meletsis

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What is the Tax Office clamp on Tom Karas and why was it extended?

The article reports that the Australian Taxation Office (ATO) obtained a freeze—described as a $44 million clamp—on the assets of alleged money launderer Tom Karas. A Supreme Court freeze order that was first granted last month was extended indefinitely by Judge Jennifer Davies, meaning the freeze remains in place until the court orders otherwise.

What does an asset freeze or court 'clamp' mean for a person under investigation?

An asset freeze or clamp is a court-ordered restriction that prevents the person from accessing or moving specified funds and property. In this case the Supreme Court order affected bank accounts and other assets owned by Tom Karas, and the extension means those assets stay frozen while the legal process continues.

Who is investigating Tom Karas and what are they alleging?

A joint operation between the Australian Taxation Office and Victoria Police’s Purana taskforce is investigating Tom Karas. Police have previously alleged Mr Karas and his wife laundered money on behalf of convicted drug baron Horty Mokbel; the ATO is pursuing related tax claims.

What is the ATO writ mentioned in the article and how much does it demand?

The ATO lodged a writ last week demanding that Tom Karas pay tax bills dating back to 2003. The writ seeks about $44 million, including interest and penalties. The ATO told the court it has not been able to serve the writ 'as yet.'

Which specific assets of Mr Karas were reported as frozen or affected?

According to an affidavit by Mr Karas cited in the article, the ATO had already emptied three National Australia Bank (NAB) accounts that were previously frozen by the Supreme Court. He also listed a heavily mortgaged development property in Fitzroy, $153,000 in an ANZ account belonging to his company Capital One Securities, and a $600,000 superannuation fund held with his wife, Irene Meletsis.

Can superannuation or company accounts be targeted in a Tax Office clamp?

Yes. The article notes the freeze affected a $600,000 superannuation fund held by Mr Karas and his wife and money in a company account (Capital One Securities) at ANZ. Court orders and ATO enforcement actions can extend to personal, corporate and retirement accounts when authorities pursue tax liabilities or suspected proceeds of crime.

Does the freezing of accounts at banks like NAB or ANZ mean those banks are at risk?

No. The article describes targeted freezes on specific accounts tied to Mr Karas. Banks such as NAB and ANZ may be required by court order to freeze customer accounts, but that is an enforcement action against the account holder, not a statement about the bank’s overall financial health or operations.

What should everyday investors watch for as this case progresses?

Investors should monitor court updates and official ATO statements for developments such as service of the writ, further court orders, or outcomes of the joint investigation by the ATO and Victoria Police’s Purana taskforce. If you hold or are exposed to companies or assets named in enforcement actions, follow verified legal updates rather than speculation to assess any potential financial impact.