ATO drops $110m Federal Court tax case against developer Jim Raptis, companies and family

After a three-year asset freeze and 26 adjournments, the ATO’s $110m Federal Court case against developer Jim Raptis is over. READ WHAT HAPPENED

The Australian Taxation Office has quietly dropped its $110m case against James Raptis, after striking a deal with the veteran Gold Coast developer.

The Federal Court froze assets linked to Mr Raptis, wife Helen and son Evan, including their $20m Paradise Waters mansion and a Lexus LS500 sedan, in a hearing without notice on October 1, 2021.

The freeze came as the ATO slapped a $109.7m tax assessment on Mr Raptis, members of his family and 11 companies it alleged were linked to him.

Court documents said ATO investigations had revealed apparent “tax avoidance arrangements” by the Raptis group.

“Mr Raptis and entities with which he is associated have a long history of failing to file tax returns and pay tax debts,” the ATO alleged in documents.

The case was adjourned 26 times since then and court records show it was dismissed by consent in October.

The Gold Coast Bulletin has contacted Mr Raptis and the ATO for comment.

Developer Jim Raptis. Picture: Glenn Hampson

The deal came a decade after another tax office tussle which saw him pay a literal pittance of what he owed taxpayers.

Raptis Group first listed on the ASX in 1986 but has twice been ­delisted, in 1991 owing ­investors $65 million and most recently in 2008 owing ­creditors $1 billion.

In 2014 it whittled down a $30m ATO bill related to the collapse to just $6 – which is not a typo.

In 2014 and 2015, two Jim Raptis companies used to develop the Sapphire building at Labrador went into liquidation with combined debts of $11.03m.

The listed Raptis Group now operates as a management rights company for Raptis family developments. It logged a $117,339 profit last financial year.

The Raptis Pearl site at Main Beach Pde in Main Beach, where apartments were recently settled. Picture Glenn Hampson

Despite the freezing order, Mr Raptis was able to develop hundreds of millions of dollars worth of apartments and shift valuable properties in his hefty portfolio.

Under the orders, Mr Raptis, 78, was also allowed to spend $10,000 a week on living expenses.

In its court filing, the ATO alleged Mr Raptis had a long-time association with criminal accountant Vanda Gould, who was convicted for providing offshore tax avoidance services for Australian taxpayers.

Mr Raptis’ family members are not accused of wrongdoing, criminal or otherwise, and it is not suggested Mr Raptis engaged in any offending.