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Major clothing retailer fined more than $700,000 for evading Customs duty
A major Queensland-based clothing retailer, Lorna Jane Pty Ltd, and its office holders, have this week been convicted of evading payment of Customs duty and making false statements, and fined a total of more than $700,000.

Customs Queensland Regional Director Jenny Eutick said the conviction handed down in the Queensland Supreme Court on Wednesday (20 April) should serve as a warning to all importers to ensure they submitted accurate invoices to Customs.

Ms Eutick said a Customs investigation began when officers conducted a compliance audit of the company, which has approximately 20 retail outlets across Australia, in January 2004.

She said Customs identified numerous incidents of falsified documentation after checking invoices for garments imported between 2002 and 2004.

"Detailed examinations by our officers showed that the company had deliberately undervalued goods imported from its overseas suppliers when reporting these transactions to Customs. This resulted in a massive underpayment of Customs duty and GST," Ms Eutick said.

In the Queensland Supreme Court, Lorna Jane Pty Ltd was convicted on 91 charges of evading duty and making false statements under the Customs Act 1901, and fined a total of almost $595,000. Costs of $22,000 were also awarded against the company.

The company's two principals, William John Clarkson and Lorna Jane Clarkson, were also convicted on 91 charges of making false and misleading statements and fined a total of $109,200.

Ms Eutick said the company had already repaid a total of $425,000, representing a shortfall in duty and GST payments, prior to the handing down of the Queensland Supreme Court's decision.

She said the case highlighted the need for all importers to be aware that Customs will seek severe penalties against importers falsifying documentation in order to evade Customs duty.

"Customs conducts regular compliance audits of importers to ensure that these laws are being complied with," Ms Eutick said.

Source: Australian Customs media release