Diamond-dealing playboy slugged with $5 million tax bill

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This was published 6 years ago

Diamond-dealing playboy slugged with $5 million tax bill

By Cameron Houston Chris Vedelago
Updated

Diamond and precious metals dealer Alejandro "Alex" Mendieta has been slapped with a tax bill of almost $5 million after allegedly claiming GST credits on thousands of transactions that he was not entitled to receive.

The Australian Tax office served the assessment on October 12, informing the Colombian-born playboy that he owes $4,997,955 on jewellery trades between 2014 and 2017, which includes almost $800,000 in interest.

Alex Mendieta with friends on Sydney Harbour.

Alex Mendieta with friends on Sydney Harbour.

Over the past six years, Mr Mendieta has transformed his business Gold Buyers Melbourne into a multimillion-dollar empire that turned over $66 million in the 2015-16 financial year.

The 31-year-old's vast wealth, opulent lifestyle and constant boasting on social media appear to have attracted unwanted attention from the tax office.

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 Credit: Stefan Postles

Fairfax Media recently revealed Mr Mendieta was also the subject of a major investigation by the ATO over his alleged involvement in another GST rort that has cost the Commonwealth government about $879 million in lost revenue.

The alleged scam, which has been running since 2012, has seen gold traders, refiners and criminal syndicates exploit a discrepancy in the way GST is applied to "scrap gold" compared to gold bullion which is exempt from the 10 per cent tax.

At the time, Mr Mendieta's lawyer Sazz Nasimi​ confirmed his client was under investigation, but insisted he had complied with all tax obligations.

"As far as I'm aware, almost everyone in the gold industry is under investigation by the ATO, it's nothing unusual," said Mr Nasimi from Madgwicks Lawyers.

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Alex Mendieta drinking French champagne

Alex Mendieta drinking French champagne

Mr Mendieta is an associate of property spruiker Jamie McIntyre, who took financial advice from tax agent Arjuna Samarakoon and received a $530,510.40 in rebates under a research and development scheme.

Samarakoon was recently jailed for 18 months after defrauding the ATO of $360,000 in tax refunds from an R&D scheme.

Alex Mendieta posing with luxury vehicles.

Alex Mendieta posing with luxury vehicles.

Renowned for their playboy lifestyles and expensive tastes, Mr McIntyre and Mr Mendieta regularly hire luxury boats and cruise around Sydney Harbour.

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