Hancock Prospecting, the mining company owned by billionaire Gina Rinehart, has criticised regulators for an “unnecessary” $130,000 fine for failing to file financial reports on time.
The business was ordered pay the fine after pleading guilty to 13 counts of breaching section 319 of the Corporations Act 2001, which stipulates that corporations must lodge their annual report with the Australian Securities and Investment Commission within four months of the end of the financial year.
Hancock Minerals, Hancock Prospecting and Hope Downs Iron Ore, all companies in Rinehart’s stable, failed to submit multiple financial reports on time between 2008 and 2012, magistrate Richard Huston heard at the Central Law Courts in Perth on Monday.
The maximum penalty for each charge was a fine of $13,750.
In a statement, a spokesman for Hancock said the prosecution was “not necessary” because the companies had paid their taxes on time, and the financial reports, while late, had been filed before the charges were laid.
He also noted that the Hancock Prospecting Group had “paid billions of dollars in taxation” since 2008, the date given for the earliest charges.
“This prosecution highlights questions as to why some private companies must file annual accounts with a government agency even when timely paying tax, while others do not,” the statement said.
“What benefit is there for taxpayers of this government administration requirement for some private companies with the extra costs involved for government agencies?
“When the government is attempting to bring about policies to alleviate the decline in small business openings, decline in investment in Australia, decline in exploration, and record debt, do such government administrative requirements assist?”
Over-regulation is a familiar topic for Rinehart, whose wealth of $20 billion makes her Australia’s richest person.
The three Hancock group companies were charged in April, following an Asic investigation.
In a statement on Monday, Asic commissioner, Greg Tanzer, defended the decision to prosecute.
“Financial accounts hold important information for shareholders, creditors and the public to help them make informed decisions,” Tanzer said.
“ASIC will continue to take enforcement action against companies who fail to meet their financial reporting obligations.”
Tanzer said Asic had prosecuted 17 public companies for the same offence between July 2014 and April 2015. However the Hancock prosecution was more significant - the heftiest fine ordered in the other prosecutions was $27,000.
