wessex19
25th May 2006, 03:20
ref "Travelscene" ........25th May 2005
Airline Virgin Blue Holdings Ltd has started defamation proceedings against a newspaper which made allegations of tax evasion.
Virgin is suing Nationwide News Pty Limited in the NSW Supreme Court claiming damages, aggravated damages, interest and costs over a number of articles published by The Australian newspaper in late May.
The articles were about an alleged tax scheme but Virgin chief executive Brett Godfrey said he did not devise nor market a tax scheme.
The airline received a proposal about a tax planning structure from Ernst & Young which had audited its aircraft leasing company the International Lease Finance Corporation Group (ILFC).
Virgin then considered the proposal, took tax and legal advice, before passing the structure onto ILFC.
ILFC then reviewed and adopted the proposal, Virgin said, engaging Ernst & Young.
"Virgin Blue notified ILFC of the proposal, however, at no time did either Mr Godfrey or the airline professionally advise ILFC on the structure," Virgin said.
"Virgin Blue's involvement was limited to the context of leasing aeroplanes from ILFC."
Mr Godfrey did not lure anyone to adopt the proposal, the airline added.
A separate newspaper article asserted that the Australian Tax Office (ATO) had accused Virgin of destroying documents.
After meeting with the ATO after the articles were published Virgin said the ATO had not made the allegations.
Airline Virgin Blue Holdings Ltd has started defamation proceedings against a newspaper which made allegations of tax evasion.
Virgin is suing Nationwide News Pty Limited in the NSW Supreme Court claiming damages, aggravated damages, interest and costs over a number of articles published by The Australian newspaper in late May.
The articles were about an alleged tax scheme but Virgin chief executive Brett Godfrey said he did not devise nor market a tax scheme.
The airline received a proposal about a tax planning structure from Ernst & Young which had audited its aircraft leasing company the International Lease Finance Corporation Group (ILFC).
Virgin then considered the proposal, took tax and legal advice, before passing the structure onto ILFC.
ILFC then reviewed and adopted the proposal, Virgin said, engaging Ernst & Young.
"Virgin Blue notified ILFC of the proposal, however, at no time did either Mr Godfrey or the airline professionally advise ILFC on the structure," Virgin said.
"Virgin Blue's involvement was limited to the context of leasing aeroplanes from ILFC."
Mr Godfrey did not lure anyone to adopt the proposal, the airline added.
A separate newspaper article asserted that the Australian Tax Office (ATO) had accused Virgin of destroying documents.
After meeting with the ATO after the articles were published Virgin said the ATO had not made the allegations.