Twisting Tale Of Tax Havens And Company Ties May Sink Rivkin's Boat

Sydney Morning Herald

Wednesday July 11, 2007

Elisabeth Sexton

WHEN most people want a boat, they buy one, use it and, if they sell, put the proceeds into their bank account. That was not the late Rene Rivkin's way.

Over the past month, details have emerged about the financing of his luxury cruiser, Dajoshadita, which could lead to the trustee of his bankrupt deceased estate recovering millions of dollars from a bank account in Jersey.

If he succeeds, the trustee, Anthony Warner, will distribute the funds to Rivkin's creditors, the largest of which is the Australian Taxation Office.

The trail starts in a noted tax haven, the British Virgin Islands, with a company called Derata. It was the sole director of Thameslink, whose registered office was in another tax haven, Jersey. Thameslink had just one asset, a large boat, bought for $4.5 million and refurbished in 2002 for $2.3 million.

The boat was chartered by Rivkin for $25,000 a quarter. During the lease he renamed it in honour of his children, Damien, Jordan, Shannon, Dion and Tara.

The vital question is: was Rivkin the owner of Thameslink and hence the owner of the boat?

At a recent public examination in the Federal Magistrates Court, Rivkin's bookkeeper, Margaret Woolveridge, gave evidence that while the Dajoshadita was being refurbished in Cairns, she received invoices from the boat builder, had them authorised by the managing director of Rivkin Group, George Freris, and paid them. She also paid the charter fees until "Mr Rivkin decided he didn't want to pay them".

She received quarterly reminders from Rivkin's solicitor, Richard Gelski.

"Why would Mr Rivkin's personal solicitor be writing to you to collect a debt that Mr Rivkin owed?" asked Murray Aldridge, SC, the trustee's barrister.

Ms Woolveridge did not know.

"You understood that lawyers are obliged to avoid a conflict of interest by acting for someone and for someone else who makes a claim against any one of their clients?"

Yes, but she assumed "Mr Gelski was acting as agent to collect the money".

Mr Gelski also asked Rivkin's accountant, Adam Blackman, to file Thameslink's tax return.

"You saw nothing untoward in Mr Gelski, who was representing Mr Rivkin in tax matters, seeking to have you, Mr Rivkin's accountant, prepare a return for a charterer?" the trustee's second barrister, David Ash, asked Mr Blackman.

"No, I happily accepted another job," Mr Blackman said.

Thameslink's accounts showed a loan from "the shareholder". Before refurbishing it was $4.4 million; after that it was $6.6 million. This meant that"the shareholder" had lent Thameslink an extra $2.2 million in 2002.

Correct, Mr Blackman said.

"The only reasonable inference from that document is that the shareholder of Thameslink is Mr Rivkin, isn't it?"

"If the figure is the same as the refurbishment figure, unless it's an accounting anomaly by Thameslink, but based on those figures, yes," Mr Blackman said.

Mr Gelski will give evidence next month.

© 2007 Sydney Morning Herald

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