Aussie donut mogul charged with $30m Jersey tax fraud

Thursday 02 November 2017

A Sydney multi-millionaire who brought the Krispy Kreme donut franchise to Australia could face up to 10 years in jail if proven guilty of dodging $30million in tax by concealing it in Jersey.

76-year-old businessman John Kinghorn was charged this week of defrauding the Commonwealth along with an additional count of deceiving a Commonwealth public official following a long-running investigation by the Australian Federal Police (AFP).

They allege that Mr Kinghorn falsely claimed that he did not beneficially own and control two companies registered in Jersey - Kalomo Corporation and Kalomo Pacific Leasing – between 2004 and 2007.

He was also said to have obstructed the Commissioner of Taxation’s ability to properly assess his income tax bill by telling the Australian Taxation Office that he did not control any unlisted company outside Australia in 1997. 

Ownership of those companies, AFP say, allowed him to avoid tax of more than $30million – an offence that could land the mogul with up to a decade of prison time.

Pictured: The Sydney businessman allegedly used companies in Jersey to conceal his riches, allowing him to escape from paying up to $30million.

Mr Kinghorn, who founded RAMS Home Loans, appeared at Downing Centre Local Court on Tuesday in connection with the charges.

AFP Assistant Commissioner Neil Gaughan said in a statement that the charges came following eight years of enquiries, which also involved the Serious Financial Crime Taskforce and various international agencies.

He commented: “Serious financial crime poses a threat to Australia’s economy, financial markets, regulatory frameworks, superannuation and tax system.

“Commonwealth fraud offences have a significant impact on the Australian public — every dollar represents funds that could have been put to use for the benefit of the whole community.

“This result should serve as a warning that we will use every capability at our disposal to bring allegations of fraud before the court.” 

The case has been adjourned to February next year.