Wheatley gives evidence in tax case

Music promoter Glenn Wheatley admitted he handled his money in a "spectacularly
stupid" way when he sent funds overseas in a scheme which put him in jail for tax
fraud.
The disgraced music entrepreneur took the witness stand in the Melbourne Magistrates
Court on Monday, giving evidence against a lawyer who is accused of helping him
dodge a hefty tax bill.
The lawyer, whose name is suppressed, is charged with four counts of tax fraud.
He is accused of helping Wheatley avoid paying more than $800,000 in tax he incurred
after managing a tour by singer John Farnham and a Kostya Tszyu boxing match.
Wheatley said in his witness statement the accused man suggested he take his money
offshore and not declare it in Australia.
Wheatley said the man knew he had a big tax bill to pay and that he was struggling
financially to make ends meet.
He told the court his wife had to go back to work to help the situation, he had
creditors to pay and fees for the private schooling of his three children.
When cross-examined by defence lawyer Ian Temby QC, Wheatley would not agree that
sending his money overseas to avoid tax was disgraceful.
But he panned the treatment dished out to him by prosecuting authorities.
"The way I was treated was disgraceful," he told the court.
"I was doing my level best to pay everyone back and it was what it was.
"I sent it over there and I knew what I was doing."
When Wheatley could not say when exactly he first met the accused, Mr Temby
suggested he was making it up as he went along.
"Don't come at me with that," Wheatley said.
"I'm telling the truth to the best of my knowledge.
"Please make note of that."
The alleged offending relates to the years 1994-1996 and 2002-2003.
Wheatley has spent time behind bars for tax evasion, having been the first person
jailed as part of the ongoing $300 million Operation Wickenby, the nation's largest
white-collar criminal investigation.
Wheatley told the court his sentence was unfair given he had cooperated with
authorities and agreed to testify against others.
The former bass player for the Masters Apprentices, who also managed the Little
River Band and Delta Goodrem, was handed a minimum 15-month sentence in the
Victorian County Court in 2007.
He served 10 months behind bars and was released for the remaining five months on
home detention, during which he had to wear an electronic security ankle tag.
He had pleaded guilty to single counts of defrauding the Commonwealth, failing to
aid to the utmost of his power in the administration of property and his affairs
contrary to the Bankruptcy Act, and dishonestly obtaining gain.
The committal hearing continues on Tuesday.