Former Labour cabinet minister Graham Richardson has agreed to pay an
undisclosed sum to end his $2.3 million dispute with the Australian Tax
Office (ATO).
Richardson told The Australian he could no
longer afford to keep fighting the ATO and an agreement had been
reached to end his role in one of the most controversial share
ownership disputes in Australian history.
The tax office took
action against Mr Richardson in 2005 after the late stockbroker Rene
Rivkin told Swiss investigators that he, businessman Trevor Kennedy and
Mr Richardson were the secret owners of a $27 million stake in Offset
Alpine Printing Group.
Shares in the printing company surged after a fire at its plant in December 1994, resulted in a $52 million insurance payout.
Richardson maintains that he never owned the shares and any money he received from Rivkin was a gift.
“I
have spent several hundred thousand dollars on legal bills, and I think
the case would cost $1 million and I just can’t afford to bat on
forever; I just don’t have the money,” Richardson said.
The tax office had sought $700,000 it said was owed in unpaid taxes, along with a $1.6 million interest and penalty payment.
“I never held the shares,” Richardson said.
“All there is, is a claim from Rene made when he was unwell.”
