Tax avoidance and money laundering charges against former CVC Limited chairman Vanda Gould, former Sunland chairman John Leaver and Swiss resident Peter Borgas have been dropped.

The trio were arrested by Federal Police in October on allegations they used a complex network of companies in tax havens to avoid millions in Australian tax.

CVC Investment Managers chairman Vanda Gould. Credit:PAUL JONES

They were each charged with conspiracy to defraud the Commonwealth and conspiracy to deal with property intending that it be used as an instrument of crime.

The charges, which carried jail terms of up to 25 years, were withdrawn by the Commonwealth Director in Sydney Local Court on Tuesday morning.