Police, Tax Office move in
Jacquelin Magnay and Kate McClymont | July 7, 2009
THE chairman of the Parramatta Eels, Roy Spagnolo, is being investigated by NSW police over alleged threats he made to former Eels chief executive Denis Fitzgerald. Mr Spagnolo has also come under the scrutiny of the Australian Taxation Office over his involvement in failed companies, leaving the Tax Office out of pocket by about $1 million.
Mr Fitzgerald filed a formal complaint at Gladesville police station on Sunday about a threat he said Mr Spagnolo had made in the Chairman's Club Lounge at CUA Stadium Penrith on Sunday evening.
The Herald revealed yesterday that Mr Fitzgerald said Mr Spagnolo told him: "I will bury you."
Yesterday Mr Spagnolo issued a statement saying he denied the allegation. "A conversation took place between Mr Fitzgerald and myself, however no threats were made, we shook hands at the end and moved on."
Gladesville police said they were investigating an alleged threat made against a Gladesville man and their inquiries were continuing.
Tax insiders say the pattern of Spagnolo-related companies using the same liquidator, in this case Peter Ngan, having a Spagnolo employee, Xavier Lo, control proxies at creditor meetings and having related entities as small creditors is similar to a "phoenix operation", and is a top priority for the Tax Office.
Unrelated to the Spagnolo companies, the Tax Office has specialist investigators specifically looking at phoenix operations as part of a $70 million four-year program.
"Phoenix arrangements - that is, attempts to evade tax through the deliberate, systematic and sometimes cyclical liquidation of related corporate trading entities - continue to be a focus," the Tax Office said.
"Where we have evidence of offences that may warrant prosecution, we will continue to work with the Australian Federal Police and the Commonwealth Director of Public Prosecutions."
The tax commissioner said between July 2008 and March 2009 $38.6 million in tax and penalties was raised from phoenix cases.
Meanwhile the NRL has started its own salary cap investigation into property transactions of Parramatta players after Mr Spagnolo revealed that he and his friend, the property developer Vince Lombardo, had guaranteed land deals with two players.
Mr Spagnolo said in a statement: "The Parramatta NRL Club is committed to working with the NRL in relation to any alleged salary cap breaches recently reported.
"The club is adamant no breach took place, however it will assist in ensuring this matter is investigated thoroughly."
