{ "docId": "019dd923-622c-750b-8b9a-06a86cfc80f7", "docSlug": "aa98098de0fa", "documentTitle": "Quintis Limited (QIN)", "authorId": "57_Viceroy_Research", "authorName": "Viceroy Research", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": null, "orientation": "portrait", "aspectRatio": 0.70709807, "pageNumber": 49, "pageCount": 49, "prevPage": 48, "nextPage": null, "slideType": "cite_precedent", "function": "cite_precedent", "density": "overcrowded", "nDataPoints": 0, "notes": "The slide highlights the irony of Mr. Atkinson defending schemes that later failed, specifically mentioning Timbercorp, Palandri's Wine, and Barkworth Olives.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-06a86cfc80f7/49", "deckHref": "/decks/019dd923-622c-750b-8b9a-06a86cfc80f7", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-06a86cfc80f7.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-06a86cfc80f7#slide-49", "components": [ { "bbox": null, "kind": "callout", "text": "In summary, TFS was born out of the East Kimberley Sandalwood tax evasion scheme.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-25b3-7229-beea-86424a4f976b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.35, "x": 0.12, "y": 0.64 }, "kind": "list", "text": "Timbercorp – Liquidated for scrap\nPalandri's Wine – Liquidated for scrap\nBarkworth Olives – Liquidated for scrap", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5dc6e974-a4a3-4869-9f9a-0496ca880b2f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.76, "x": 0.12, "y": 0.3 }, "kind": "paragraph", "text": "So you can get an idea as to the extent of due diligence performed by TFS management, see Mr Atkinson's defence of the tax evading schemes industry in the 90's, heard at a senate hearing for possible MIS reform:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a2109c5e-f4b4-4eb1-9b70-3dce8a454c25", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.76, "x": 0.12, "y": 0.21 }, "kind": "paragraph", "text": "In summary, TFS was born out of the East Kimberley Sandalwood tax evasion scheme. What makes TFC different to EKS is that the loans offered to investors of the scheme must be enforced in the event that the company collapses, and not simply payable contingent on the outcome of an investment.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cc9beabc-bd96-4324-b23b-ab29d525f284", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.76, "x": 0.12, "y": 0.09 }, "kind": "paragraph", "text": "were used to pay legal firms' solicitor fees (including Wilson & Atkinson) for them to represent investors in cases against the ATO in court.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d7ccebb2-f8ef-437d-bdcf-29a34599b4cd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.07, "w": 0.76, "x": 0.12, "y": 0.13 }, "kind": "paragraph", "text": "Six test cases were taken on by the ATO to determine precedent. Wilson & Atkinson represented the investors in 3 plus an additional case by an investor in the EKS (East Kimberly Sandalwood). They lost all cases because the court found that the schemes were primarily entered into for the purposes of evading tax.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dbe3af23-3863-4728-b5bb-c034bd827cd5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.68, "x": 0.16, "y": 0.36 }, "kind": "quote", "text": "CHAIR—I understand that. We heard evidence yesterday in Kalgoorlie about investment schemes that we know have failed, such as Servcom, Oracle and Satcom... Mr Atkinson—I think in fairness—and I think this is what Kevin was saying...", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a1332515-28fa-40ec-8c19-f9ea2d8b0517", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "CHAIR—I understand that. We heard evidence yesterday in Kalgoorlie about investment schemes that we know have failed, such as Servcom, Oracle and Satcom. Not only have the investors got into a situation where they are confronted with tax debt but they are also being issued notices from one particular company, Servcom, with regard to that company seeking repayment of the loans or other payments associated with the scheme. I think it is a very serious issue; it is one that people such as you ought to give a lot of thought to. Mr Atkinson—I think in fairness—and I think this is what Kevin was saying—at the same time you have to look at the successes in the managed investment industry. Timbercorp was one of the top three most successful listed companies, if not the most successful, on the Stock Exchange in the latter half of the nineties. You have to look at the wine industry in the south-west of Western Australia. You have to look at Barkworth Olives and the absolute growth in the olive industry, which was almost non-existent six or seven years ago. I think it is very important to note that, without discriminating on a project-by-project basis, you cannot be seen to be giving a fair treatment of the industry. There are projects that have failed but, equally, there are projects that have been very successful and there are projects whose commercial viability is imperilled by only one thing, and that is the tax office's treatment of investors in that project in the last two years. — Senate Hearing Transcript", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-25b3-7229-beea-896a93b68ba5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.55, "x": 0.12, "y": 0.89 }, "kind": "source-note", "text": "71 http://www.aph.gov.au/binaries/hansard/senate/commttee/s4655.pdf\n72 http://www.aph.gov.au/binaries/hansard/senate/commttee/s4655.pdf", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "af2e3d0e-9568-45d3-9e31-545cfbd9c518", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.15, "x": 0.12, "y": 0.28 }, "kind": "title", "text": "Due Diligence", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "801e61cd-dd72-416c-a7ae-d17df67190d3", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "authority-citation", "slug": null, "matchId": "6a043c50-753f-43e2-94e4-7ae909e15090", "evidence": "Uses senate hearing transcript to challenge the credibility of management's due diligence.", "confidence": 0.8 } ], "arcBeats": [], "loops": [ { "to": 49, "from": 47, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "0446447a-eed3-4449-8972-68a8c8cb096b", "evidence": "The document concludes with a call to action based on the findings.", "position": 2, "objective": "Highlight the consequences of not acting", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.6, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }