Developer forges forward
Raptis continues to build towers despite $80m asset freeze by ATO
Enduring Gold Coast developer Jim Raptis says a freeze over $80m of his assets has “settled down” as the Australian Taxation Office’s $109.7m case against him was adjourned for the 15th time.
The Federal Court froze assets linked to Mr Raptis, wife Helen and son Evan, including the veteran developer’s $20m Paradise Waters mansion and a Lexus LS500 sedan, in a hearing without notice on October 1, 2021.
Under the orders, Mr Raptis was allowed to spend $10,000 a week on living expenses, fund legal expenses and stay in the family’s palatial waterfront mansion.
Despite the freezing order, Mr Raptis has continued to develop hundreds of millions of dollars worth of apartments, as well as shift properties in his hefty portfolio.
“The orders were difficult in the beginning but have settled down to a much better process,” he said this week.
“The orders have always allowed for the business to continue to develop and build as per usual.”
The freeze came as the ATO slapped a $109.7m tax assessment on Mr Raptis, members of his family and 11 companies it alleges are linked to him.
“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 alleges in documents.
According to the court filing, the ATO alleges Mr Raptis has 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.
A case management hearing scheduled for Tuesday was adjourned to February 21 – the 15th pre-hearing adjournment since the judgment more than two years ago.
Neither the ATO nor Mr Raptis would detail why the case had taken so long to be heard.
The ATO’s media department said it was unable to comment on the matter.
Mr Raptis said, “We are working towards concluding settlement with the ATO”.
“The issues have been complex and have required clarifications and significant time to resolve,” he said in a statement.
The freezing orders have been altered by the court three times since they were made in 2021. Among the alteration was one that allowed Mr Raptis and the companies to dispose of property if they had written permission from the ATO.
Shortly before the freezing order, Mr Raptis signed a $16m contract to buy a 6525sq m site on the Gold Coast Highway, formerly home to Sizzler at Mermaid Beach.
A year later he was to sell the site.
In October, Mr Raptis sold a site on Broadbeach’s Ann St to Soheil Abedian for $12.1m, after paying $12.5m for the land and getting approval for a 35-storey tower.
That sale came after the $9.792m settlement of another Broadbeach site at Chelsea Ave in March last year, on which he made a $3.7m gain.
In October 2022, he sold a two-level riverfront house at Paradise Waters, bought for $4.75m in March that year, for $5m. The ASX-listed Raptis Group is not subject to the asset freeze. looking