Geneva-based accountant Philip Egglishaw allegedly set up a A$300m (£172m, $222m, €198m) network of tax avoidance schemes, reports newspaper The Australian.
The Jerseyman came to the attention of the Australian authorities in 2004 when Federal Police seized his laptop following claims that he had lured prominent Australians into tax evasion schemes.
The laptop provided details of Egglishaw’s Australian clients, tax haven transactions and offshore trusts.
As a result, the Australian Tax Office (ATO), the Australian Crime Commission (ACC) and the Federal Police launched a joint investigation in 2006, called Operation Wickenby.
International arrest warrants
An international warrant for Egglishaw’s arrest was issued in 2008, followed by a second in 2013 amid claims that he fled with $34m of Hogan’s money from an account the actor held at the Corner Bank in Lausanne, Switzerland.
Despite the international warrants, authorities in Switzerland failed to detain Egglishaw, who is understood to have been arrested in Italy when he attempted to return from a holiday.
Australia’s Attorney-General Department declined to confirm reports of Egglishaw’s arrest.
“A man was arrested by Italian authorities on 3 May pursuant to an Interpol red notice issued by Australian authorities. As the matter is now before the courts of a foreign country, it would not be appropriate to comment further,” a statement read.
As of 30 June 2015, when Project Wickenby ended, nearly A$2.3bn in tax liabilities had been recouped and 46 convicted.
It has since been replaced by the Serious Financial Crime Taskforce.
The ATO spent eight years pursuing Hogan, eventually reaching a settlement in May 2012. The Australian taxman claimed that Hogan and his artistic collaborator John Cornell owed more than A$150m in unpaid taxes and penalties, dating back to the 1980s.
Earlier this week, Hogan denied that he had paid the ATO tens of millions to end the long-running dispute.
He has always refuted claims that his actions were tantamount to tax evasion, settling the case on a “without admission” basis.