[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".
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