Scandal-plagued convenience store chain 7-Eleven and its franchisees are under investigation from the Victorian and NSW state governments over their alleged failure to pay state payroll tax.
It's another blow for the company that was at the centre of a major wage fraud scandal last year after an investigation by Fairfax Media revealed 7-Eleven workers were being paid as little as $5 per hour.
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7-Eleven 'bullying' tactics caught on camera
Franchisee Helen Ren had her store surrounded by fences while multiple 7-Eleven head office staff tried to persuade her to sign a termination contract.
The separate state government investigations into 7-Eleven were revealed in a freedom of information request under NSW transparency laws lodged by Labor MLC Daniel Mookhey to the Office of State Revenue.
The documents uncovered through the request revealed that Victoria's State Revenue began an investigation into the Melbourne-headquartered 7-Eleven and its franchisees operating in Victoria over concerns about payroll tax compliance.
Mr Mookhey sought information regarding payroll tax compliance by 7-Eleven and its franchisees over concerns the wage fraud committed by the company's store owners had robbed the state government of payroll tax revenue.
Documents from the request – known in NSW as a government information public access request – show there are no records of 7-Eleven or any of its franchisees or affiliates registering for payroll tax in NSW for the last three financial years.
As a result 7-Eleven and its franchisees or affiliates have paid zero payroll tax in NSW for the last three financial years.
According to the OSR there is currently "insufficient information to estimate the payroll tax [if any] that may be required to be paid by 7-Eleven in NSW".
The information request also revealed that neither OSR nor the NSW Department of Finance or related agencies were aware of possible 7-Eleven payroll tax avoidance in NSW until informed by Victoria's State Revenue Office.
According to documents uncovered from the information request, Victoria's SRO began investigating the Melbourne-headquartered company and its Victorian franchisees on October 30 last year – about two months after the first report from Fairfax Media regarding the wage scandal.
A spokesman for 7-Eleven confirmed the company "has had some discussions with the relevant state revenue offices" but insisted 7-Eleven head office "meets its payroll tax obligations in all of the states in which it has a corporate payroll, including NSW".
"7-Eleven is always prepared to engage with regulatory and other authorities as part of its commitment to good business practice," the spokesman said.
7-Eleven also strongly disputed allegations its head office had not paid payroll tax in NSW over the past three years. In regards to franchisees, the 7-Eleven spokesman said franchisees were independent businesses.
"They are responsible for the payment of their own payroll tax and are subject to the same Commonwealth and State taxation laws as any other businesses," the spokesman said.
Mr Mookhey criticised what he said was a lack of action on the part of the Baird government.
"7-Eleven engages in the biggest wage-theft scandal in Australian history, it hasn't paid a single cent in payroll tax in NSW, and the NSW Government's response is to do nothing," Mr Mookhey said.
"If the biggest wage-theft scandal ever isn't enough reason for the Government to investigate, what will it take for the Government to make sure 7- eleven pays its taxes?" he asked.
"7-Eleven's victims are the employees from whom they stole. The victims of the NSW government's inaction are the honest businesses that pay their taxes, and the people who rely on the revenue collected to pay for NSW's nurses and paramedics," Mr Mookhey added.
The SRO declined to answer questions saying it could not comment on an individual taxpayer matter.
A spokeswoman for NSW Office of State Revenue said it commenced an analysis of 7-Eleven franchisees that may have a payroll tax liability in NSW in September 2015 and a coordinated investigation was initiated in October 2015.
"This coordinated investigation is being led by the State Revenue Office of Victoria, where 7-Eleven's Australian corporate headquarters are located," the spokeswoman said, adding that the OSR had been in constant contact with the SRO and other revenue offices around the country.
"Where a business fails to register or is found to have understated their payroll tax liability, OSR will issue an assessment that includes the unpaid amount plus interest and penalties where relevant," the spokeswoman added.
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