A wholesale supplier of luxury goods is being investigated by authorities after a huge oil boom has led to massive accounting discrepancies and tax havens.
Key points:A $2 billion deal between Lush and Chinese company Qiu Yan has left thousands of Australian dollars overseasThe company said the money was “frozen”In a statement, Lush said the offshore arrangements were in line with the company’s accounting and compliance procedures and “all relevant authorities have been notified”.
“This was not a transaction involving money that had been transferred from Lush to Qiu,” the statement said.
Lush said it had a tax-avoidance policy that allowed it to pay the “fair market value” of its products in full, including GST and other tax benefits.
“It’s our intention to continue to live up to that standard,” a spokesperson said.
A company called Qiu-Yan, which operates in China, has been in the spotlight after a series of big oil deals.
The company is a subsidiary of Qiu Group, a conglomerate which includes oil and gas giant Sinopec, and a joint venture between Qiu and China’s largest state-owned oil company, SinopEC.
It has been accused of laundering billions of dollar in cash through shell companies, and has been fined $2.6 billion in the past year.
It also has links to tax havens in the Caribbean and Singapore.
Qiu-yan said it was in the process of reviewing the Lush arrangements.
Topics:business-economics-and-finance,business-news,labor,wealth-and-$1-6000,tax,lush-6003,brisbane-4000,qiu-yuang-6005,china,london-5000,chinas-first-tier,nsw,australiaFirst posted February 08, 2020 13:59:39Contact Chris PincottMore stories from Victoria