Australian Federal Police arrested former Sydney accountant, Robert Agius, principal partner of accountancy firm PKF Vanuatu, on Sunday morning, for operating an offshore tax haven which allowed Australians ‘in the higher echelons of business’ avoid paying an estimated $A100m (₤50m) in tax.

Agius, a Vanuatu resident since 1979, was arrested following an investigation by the Project Wickenby taskforce into tax avoidance. He will be extradited to NSW to face two charges of conspiracy to defraud and one of money laundering.

Several others will also be summonsed to appear in court this week, and warrants have been executed in Sydney, Vanuatu and New Zealand in an operation which has identified more than $A57m in assets, some of which have been frozen, following an investigation by Project Wickenby, the Vanuatu police, NZ police and the NZ Inland Revenue Department, Melbourne paper The Age reports.

A statement of facts lodged in Perth by AFP reveals that, for an establishment fee of $A8000 and an annual fee of $US1380, PKF Vanuatu would provide an Australian company or director with false invoices from an overseas-registered company that had a bank account in NZ.

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