[Life among the predators and parasites. - Trudy] The Australian Empire built on 'no tax' principle By KATHERINE TOWERS 27may99 ONE of Australia's richest men, Maurice Alter, built his family's $650 million property empire on a policy of "not paying income tax", his most trusted business adviser told a court yesterday. Alter Group executive director Bill Boerkamp revealed the company was always searching for ways to reduce its tax liability and, because of this, was lured into the investment scam run by murdered Melbourne lawyer Max Green. Mr Boerkamp said the Alter Group, through subsidiary Edingbay Pty Ltd, sank $1.19 million into the bogus investment scheme after being told by accountants Horwath (Vic) that it was a legitimate means of avoiding tax. Horwath (Vic) and Green's law firm Aroni Colman, are being sued in a $40 million damages action brought by 186 investors who lost money through Green's fraud. Green defrauded well-heeled clients, including his wealthy father-in-law Nathan Baron, the Alter group and the owners of the Sussan and Portmans' fashion chains, in the bogus scheme to lease plant and equipment to the builders of Melbourne's City Link project at above-market rates. Investors were told they would receive a $4-to-$1 tax benefit and a return of 14 per cent after five years. The scam was uncovered only weeks after Green was found murdered in Cambodia in March last year. Under intense cross-examination by Horwath's lawyer, Peter Hayes QC, Mr Boerkamp admitted he was under specific instructions from the 73-year-old Mr Alter to avoid tax. "I'm not suggesting anything illegal . . . but your standing instruction from Mr Alter is 'I don't want to pay any tax'?" Mr Hayes asked. "Correct," Mr Boerkamp replied. Mr Boerkamp also agreed with Mr Hayes that he instructed Horwath that the group, "if at all possible", wanted to pay "nil" tax. "The Alter Group, the Pacific Group, whatever label it's had at different times . . . has substantially increased its asset base through a policy of not paying income tax over many years," Mr Hayes then said. Mr Boerkamp again said: "Correct." Mr Alter, who according to the latest BRW Rich List is personally worth almost $500 million, owns properties and shopping centres in Victoria, Western Australia and Queensland, including the $100 million Epping Plaza in Melbourne, and the $140 million Forest Hill Chase centre, also in Victoria. Mr Boerkamp was also accused of contempt of court yesterday when he admitted he threatened to "destroy" Horwath's business if it continued to defend the current court action, and not settle out of court with the plaintiffs. Mr Hayes asked: "Mr Boerkamp, you have threatened (partners of Horwath) that you would personally see to it that the business was destroyed if they did not settle this matter, haven't you?" "That's correct," Mr Boerkamp responded. Mr Boerkamp also admitted he threatened the partners of Horwath "with menace" that he would go to the police and the papers over his belief the firm had received "secret commissions" for promoting Green's scam. When asked why he did this, Mr Boerkamp said it was because of Horwath's "lies and deceit" and "so-called secret commissions". ************************************************************************* This posting is provided to the individual members of this group without permission from the copyright owner for purposes of criticism, comment, scholarship and research under the "fair use" provisions of the Federal copyright laws and it may not be distributed further without permission of the copyright owner, except for "fair use." -- Leftlink - Australia's Broad Left Mailing List mailto:[EMAIL PROTECTED] http://www.alexia.net.au/~www/mhutton/index.html Sponsored by Melbourne's New International Bookshop Subscribe: mailto:[EMAIL PROTECTED]?Body=subscribe%20leftlink Unsubscribe: mailto:[EMAIL PROTECTED]?Body=unsubscribe%20leftlink