Tax Investigation For ‘Dirty Dancing’ Promoters

Estranged showbiz brothers Kevin Jacobsen and Col Joye are being investigated by Australian police over alleged tax avoidance – but only after Jacobsen himself tipped off the Australian Tax Office.

In 2004, their Jacobsen Entertainment company bought the global rights to the “Dirty Dancing” musical (except for Japan), and set up productions around the world.

The brothers, and their children, had a falling out in May 2007 after a power struggle.

On October 9, 2008, Jacobsen’s accountants at Page Harrison warned him that many overseas companies set up to handle monies from the musical were structured so that a “very” large portion of profits were paid to overseas territories and not returned to Australia.

This could be seen as a “sham” by tax authorities.

“I contacted the ATO to separate myself from this practice at the time I became aware that I had a personal responsibility for my own tax,” Jacobsen told the Sydney Morning Herald, adding he was not involved in any wrongdoing.