ASIC ends alleged tax evasion investigation into minerals company

An ASX announcement by the mining services and diversified resources company revealed that the corporate regulator has concluded its investigation into both the company and its billionaire managing director Chris Ellison.

As reported by the ABC and The Australian Financial Review, Ellison and the Perth-based iron ore and lithium mining company were being investigated by ASIC after an internal review revealed he had failed to disclose that he held a financial interest in an offshore company that sold almost $4 million worth of equipment to MinRes in the early 2000s.

The company was based in the British Virgin Islands, where companies do not pay income tax.

ASIC said it would not take any enforcement action, including penalties, against the mining company.

ASIC began its investigation into MinRes and Ellison after The Australian Financial Review reported that Ellison had run a 10-year tax evasion scheme that provided monetary benefit to him and three other executives but cost shareholders more than $7 million.

The ATO also investigated Ellison’s activities, including his use of offshore tax havens and misuse of company resources. He admitted to defrauding MinRes shareholders and taxpayers, and assured shareholders that he would step down from his role by the middle of this year.

In November 2024, ASIC chair Sarah Court told the Parliamentary Joint Committee on Corporations and Financial Services that the corporate regulator had officially launched a formal investigation into MinRes following media reports concerning Ellison.

The allegations at the time suggested that Ellison was engaged in tax evasion for more than a decade, with senator Barbara Pocock stating that there were “real concerns” about Ellison putting his personal financial interests ahead of shareholders.

Court told the committee at the time that ASIC was in the initial stages of the formal investigation.

In a statement to Accounting Times, an ASIC spokesperson confirmed that ASIC has concluded its investigation into MinRes and decided to take no further action.

“ASIC conducted extensive inquiries, and after assessing the available evidence, it has determined that no regulatory action is warranted and the investigation is now closed,” the spokesperson said.

The ABC reported that investors have filed a class action against Ellison and MinRes in Victoria’s Supreme Court over the alleged tax scandal.

According to the board’s internal investigation, company funds had been used to give an advantage to entities in which Ellison’s daughter had an interest, without the knowledge of MinRes.