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Former Australia PM Morrison faces calls to resign over secret self-appointments
By Clyde Hughes
Scott Morrison, Australia's PM from 2018 to last May, offered an apology on Tuesday and said the self-appointments were made only to use in case of emergency due to the COVID-19 pandemic. File Photo by Lukas Coch/EPA-EFE
Aug. 16 (UPI) -- Former Australian Prime Minister Scott Morrison is facing calls for him to resign from parliament after revelations that while in power he secretly appointed himself to five ministries, often without the knowledge of those running the departments.
Prime Minister Anthony Albanese said on Tuesday that he's waiting for legal advice on what can be done now that Morrison is no longer in the leadership post, and how to prevent the same thing from happening again.
The unannounced self-appointments secretly gave Morrison final decision-making power in the ministries of health, finance, treasury, home affairs and industry.
Morrison, who was Australia's PM from 2018 to last May, offered an apology on Tuesday and said the self-appointments were made only to use in case of emergency due to the COVID-19 pandemic.
"These were extraordinary times and they required extraordinary measures to respond," Morrison said in a post to Facebook. "Our government's overriding objective was to save lives and livelihoods, which we achieved."
"To achieve this, we needed to ensure continuity of government and robust administrative arrangements to deal with the unexpected in what was a period of constant uncertainty during the nation's biggest crisis outside of wartime," he added.
Peter Dutton, head of Morrison's Liberal Party, has defended the former prime minister and accused of Albanese -- leader of the opposition Australian Labor Party -- of trying to score political points on the issue.
Karen Andrews, who was home affairs minister under Morrison, said that she was blindsided by the revelations and has called for his resignation. He represents the division of Cook in Australian Parliament.
"I had absolutely no knowledge and was not told by the [prime minister, the prime minister's office] nor the department secretary," Andrews said according to the Australian Broadcasting Corp. "This undermines the integrity of government. I think that Scott Morrison needs to resign, and he needs to leave parliament."
Tax agency obtains 'jeopardy order' for debt from
Downton Abbey-loving billionaire
Mingfei Zhao paid $11 million for iconic Vancouver mansion in same year
he declared income of $9K
Jason Proctor ·
CBC News ·
Posted: Aug 17, 2022 4:00 AM PT
Billionaire Mingfei Zhao spoke with the CBC in 2016 about his plans to restore an iconic Vancouver mansion to its former glory. The Canada Revenue Agency has applied for an order to seize money from the sale of the home. (Chris Corday/CBC)
Canada's tax agency has obtained an order to seize debts owed by a Chinese billionaire whose love of Downton Abbey inspired him to pay more than $11 million for an iconic Vancouver mansion in the same year he claimed income of just $9,424.
According to a federal court judgment issued last month, the Canada Revenue Agency sought the so-called "jeopardy order" to collect $770,710 against the future sale of Mingfei Zhao's home because the 64-year-old has left Canada and appears to be in the process of trying to sell the only asset he has left in this country.
The new 'Earl' of Shaughnessy breathes life into historic home
Zhao bought the 14,000-square foot Tudor-style property in 2014 to much fanfare, vowing to return the building to its original glory a century earlier when "the Rosemary" — named after the daughter of a liquor tycoon — was considered the grandest home ever built in Vancouver.
But according to the court documents, Zhao declared income of less than $10,000 in 2014 and $38,161 in 2015 — amounts CRA auditors concluded were "not sufficient" to support his purchase of real estate and monthly mortgage payments of $8,699.
"Lifestyle does not match reported income," a CRA auditor claimed in a lengthy affidavit obtained by the CBC.
The tax agency reassessed Zhao's income for the two years in question at a combined $1.28 million — levelling a claim against him for unpaid income tax, which has risen to more than $770,000 with interest and penalties.
'I was watching Downton Abbey at the time'
Zhao spoke with the CBC in 2016 about his plans for the Rosemary.
He described himself as a retired property developer from Beijing who made his first fortune in flax and grains before moving on to real estate. Zhao immigrated to Canada in September 2014, and his tax returns identify him as divorced.
The Rosemary, built in 1918, was named after the daughter of the liquor tycoon who built it.
New owner Mingfei Zhao bought the property for $11 million in 2014.
(Leonard Frank/Vancouver Public Library)
Zhao told CBC he was sinking millions into an upgrade of the 12-bedroom, 12-bathroom mansion, which features an arched bridge connecting the main building to a carriage house.
Speaking through a Mandarin translator, Zhao said he fell in love with the Rosemary at first sight.
"I liked it because I was watching Downton Abbey at the time," Zhao said.
The billionaire said he was determined to shatter the stereotype that people from China are serial destroyers of older properties: "I want to protect and recover this house to make it stand here another 100 years."
'He had started a new family in Europe'
Zhao has filed notices of objection to fight the tax penalty assessed by the CRA, which would normally mean that the agency would not be able to come for his money until after an appeal has been determined.
But the federal Income Tax Act allows the CRA to ask a judge to order payment when "the collection of all or any part of an amount assessed in respect of a taxpayer would be jeopardized by a delay in the collection of that amount."
The court file includes more than 2,000 pages of documents detailing attempts to nail down Zhao's bank account balances, his unreported worldwide income and his whereabouts.
At one point, he also owned another multi-million dollar home as well as a Bentley, a Rolls Royce, a Mercedes and a Range Rover. But as of last June, he was only registered as the owner of the Rosemary and the Range Rover.
Last month, records showed Zhao no longer had a Canadian cellphone account.
In March, the CRA also claimed to have "uncovered" a Globe and Mail article from nearly two years earlier "in which it stated that Mr. Zhao no longer lived in Vancouver and that he had started a new family in Europe."
'The optics don't look good'
The documents detail discussions between auditor Dale Gonwick and one of Zhao's legal representatives — who later advised that no one would appear for Zhao at the court hearing.
"I asked if there were any items he knew of that might help balance the 'not a Jeopardy' side of the equation, because from what I could see, I would have to refer this up the line as a danger of loss issue," Gonwick wrote.
The Rosemary was purchased for $11 million in 2014 and is now on sale for $19 million. It takes a fish-eye lens to properly capture the size of the property. (Chris Corday/CBC)
Zhao's representative pointed out that the Rosemary — now listed at $19 million — had been on the market for more than a year with no buyers but "admitted that 'the optics don't look good.'"
Judges have issued jeopardy orders in previous cases where large sums of cash have been found in the trunk of an automobile or in the pocket of a taxpayer's housecoat.
Federal Court Justice Cecily Strickland concluded that, while Zhao's "conduct of his affairs" may not fit with that kind of behaviour, his reported income raised questions given his lifestyle.
"Accordingly, the nature of the assessment raises a reasonable apprehension that Mr. Zhao had not been conducting his affairs in 'an orthodox fashion' and that it would be difficult to trace or recover the funds for the tax debt," she concluded.
Zhao could not be reached for comment.
Trump Organization official Allen Weisselberg pleads guilty
to tax fraud, grand larceny
CFO may be called to testify when the Trump Organization goes on trial
The Associated Press ·
Posted: Aug 18, 2022 11:21 AM ET
The Trump Organization's former chief financial officer Allen Weisselberg arrives at court on Thursday in New York. Weisselberg pleaded guilty to charges that he accepted more than $1.7 million in off-the-books compensation from the
former president's company over several years, including untaxed perks like rent, car payments and school tuition.
(Yuki Iwamura/The Associated Press)
A top executive at former U.S. president Donald Trump's family business pleaded guilty Thursday to evading taxes in a deal that could potentially make him a star witness against the company at a fall trial.
Trump Organization chief financial officer Allen Weisselberg pleaded guilty to all 15 of the charges he faced in the case, which included charges of tax fraud, grand larceny and falsifying business records. He was accused of dodging taxes on lavish fringe benefits he got from the company, including lease payments for a luxury car, rent for a Manhattan apartment and private school tuition for his grandchildren.
Seen as one of Trump's most loyal business associates, Weisselberg was arrested in July 2021. He is the only person to face criminal charges so far in the Manhattan district attorney's long-running investigation of the company's business practices.
Judge Juan Manuel Merchan agreed to sentence Weisselberg, 75, to five months incarceration and five years probation at New York City's Rikers Island jail complex, although he will be eligible for release much earlier if he behaves well behind bars. The judge said Weisselberg will have to pay nearly $2 million US in taxes, penalties and interest.
Weisselberg said nothing as he left court, offering no reply when a journalist asked him whether he had any message for Trump.
Weisselberg's lawyer, Nicholas Gravante Jr., said his client pleaded guilty "to put an end to this case and the years-long legal and personal nightmares it has caused for him and his family."
"We are glad to have this behind him," the lawyer said.
50-year relationship with company
The plea bargain also requires Weisselberg to testify truthfully as a prosecution witness when the Trump Organization goes on trial in October on related charges. The company is accused of helping Weisselberg and other executives avoid income taxes by failing to accurately report their full compensation to the government.
Trump himself is not charged in the case.
Testimony by Weisselberg could potentially weaken the Trump Organization's defence. If convicted, the company could face fines or potentially be placed on probation and be forced to change certain business practices.
Reaction from the Manhattan DA:
Weisselberg's professional relationship with Trump and Trump's late father, Fred, dates back to 1973.
"Today Allen Weisselberg admitted in Court that he used his position at the Trump Organization to bilk taxpayers and enrich himself," Manhattan District Attorney Alvin Bragg said in a lengthy statement.
"We look forward to proving our case in court against the Trump Organization," said Bragg.
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