Exclusive: Lendlease tax dispute whistleblower speaks out

The ongoing tax dispute between Lendlease and the Australian Taxation Office has taken a new turn with whistleblower Mark Watson’s revelations. Watson, who has been campaigning against Lendlease’s tax practices for over a decade, recently received validation when the ATO issued a $112 million amended assessment to the company.

Watson’s concerns revolve around Lendlease’s tax liabilities, which he believes could exceed $300 million when factoring in potential interest, penalties, and future capital gains tax liabilities. Despite facing personal and financial hardships due to his whistleblowing efforts, Watson remains committed to seeking justice.

The dispute stems from Lendlease’s handling of tax deductions related to the purchase and sale of retirement living homes. Watson alleges that Lendlease engaged in questionable accounting practices, leading to potential tax benefits that were not appropriately accounted for.

The tax issue has also raised questions about the independence of tax professional bodies, with concerns that advisers like PwC may have influenced their positions. The Tax Institute withdrew its submission to the ATO draft determination amid these concerns.

Watson’s whistleblower case against Lendlease and Greenwoods has faced legal challenges, with the courts ruling that whistleblower protection laws do not apply retroactively to events before July 2019. Despite these setbacks, Watson remains determined to seek justice for whistleblowers and hold companies accountable for their actions.

As the tax dispute continues to unfold, the implications for Lendlease and the broader industry remain significant. The case highlights the importance of transparency and accountability in corporate tax practices, as well as the challenges faced by whistleblowers in seeking justice.