An illicit, $13 million tobacco-growing operation near Goulburn has been discovered and shut down by the Australian Taxation Office (ATO), the federal revenue collection agency reports.
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An ATO spokeswoman said a search warrant was executed at a Boxers Creek property on Wednesday, February 5.
With the assistance of police, ATO officers allegedly located four acres of tobacco crops, four bales of tobacco, a hothouse and three kilns on the site. The police and ATO were at the property all day.
The ATO claimed one kiln was turned on and in the process of drying tobacco leaf.
More than 10.3 tonnes of illicit tobacco, with a excise value of about $13.3 million, was seized and destroyed, the ATO spokeswoman said.
Investigations are continuing and no charges have been laid at this stage.
The ATO is the responsible agency to detect, investigate and prosecute those who grow or manufacture illicit tobacco products.
Assistant Commissioner, and head of the ATO's Criminal Law Program, Ian Read said this, the second seizure in two weeks, was another success in stamping out illicit tobacco trade in Australia.
"The trade in illicit tobacco products in Australia has widespread negative consequences across the community," Mr Read said.
"Tobacco-growing operations are not run by small producers or farmers.
"They are run by organised criminal syndicates who deliberately engage in illegal activities.
"Involvement in illicit tobacco production is a serious offence.
"This type of activity takes vital money away from the community and places it directly into the hands of organised crime syndicates.
"Engaging in the illicit tobacco trade is not victimless. It significantly deprives the community of taxes that are required to fund essential community services such as roads, schools and hospitals."
The ATO estimates that illicit tobacco costs the Australian community $647 million in lost revenue each year.
It has been illegal to grow tobacco in Australia for more than a decade. If convicted, growing tobacco carries a maximum penalty of up to 10 years' imprisonment.
The ATO is part of the Illicit Tobacco Taskforce (ITTF), which was established to investigate, prosecute and dismantle organised crime groups who use the proceeds of illicit tobacco to fund other criminal activity, as well as ensure the appropriate revenue is paid to the Australian Government.
- If you suspect that illegal tobacco is being grown or manufactured in your community you can confidentially report it online at ato.gov.au/illicittobacco or by calling 1800 060 062.
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