AN illegal tobacco crop worth more than $42 million has been unearthed by the Australian Taxation Office (ATO) in Koraleigh.
The 250,000 kilograms of illicit tobacco was destroyed as part of the ATO’s Operation Greyhound, with help from the NSW Police Murray River Police District rural crime team and the proactive crime team.
Officers located 24 acres of the crop, with an estimated excise forgone value of approximately $42 million, and seized a picking machine and water pump.
“This was a sophisticated, organised operation,” Acting Assistant Commissioner Megan Croaker said.
“The amount of illicit tobacco found is equivalent to the weight of 13 bulldozers.
“This outcome demonstrates the ATO’s commitment to detecting, disrupting and dismantling crime syndicates that grow illicit tobacco.
“Organised criminals view the illicit tobacco trade as low-risk and high-reward, but this simply isn’t the case.
“This result showcases the impact of our operations in stopping criminals in their tracks.”
It comes after 100 acres of illicit tobacco with a total combined potential excise value of more than $84 million was uncovered in Beverford, Kyalite and Vinifera in March last year.
The ATO said at the time it was one of the biggest weeks it’s ever had in disrupting illicit tobacco growing operations in Australia.
Ms Croaker said the ATO was focused on targeting the source of the illicit tobacco supply.
“By stopping illicit tobacco from going from crop to shop, it creates a level playing field for small businesses,” she said.
It has been illegal to grow tobacco in Australia for more than a decade.
If convicted, criminals may face up to 10 years’ imprisonment, up to a $330,000 fine, or both.
The 2019–20 tax gap estimated that illicit tobacco cost the Australian community $909 million in lost excise revenue each year, instead being channelled into organised criminal activities.
“The ATO will continue to work with our cross-agency partners to ensure that illicit tobacco isn’t grown, manufactured or produced, stopping organised criminals from profiting in the process,” Ms Croaker said.
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 resemble kale, cabbage or corn and may have a pink flower growing on top
Report suspected illegal crops at www.ato.gov.au/tipoff, or call 1800 060 062.
