Tinkler settles royalties, tax disputes
Mr Higgins' barrister, Douglas Savage, told the Supreme Court in Brisbane on Friday his client and Mr Tinkler had "settled their dispute" over royalty distribution for the Middlemount coalmine in central Queensland.
The proceedings were adjourned twice by Justice Philip McMurdo while last-minute negotiations took place. The dispute was over a reported $1.2 million in royalties Mr Higgins claimed were inappropriately distributed.
The proceeds were paid to a company called Oceltip, which is 75 per cent owned by Mr Tinkler's wife, Rebecca, and 25 per cent by Mr Higgins' wife, Ruth. Mr Higgins was seeking access to Oceltip's records amid concerns some royalty payments were going towards Mr Tinkler's private companies.
Had the undisclosed settlement not been reached on Friday, it would have proceeded to a costly trial.
In another development, the Australian Tax Office formally withdrew from a number of proceedings against Mr Tinkler's companies, after telling the Federal Court in Sydney debts had been paid. The ATO has been pursuing several of Mr Tinkler's companies, including the Newcastle Jets and his building arm, the Buildev Group, over unpaid debts.
In the Federal Court last week, Sharif Hammoud, representing the Deputy Commissioner of Taxation, said the Newcastle Jets and some of the Buildev companies had made payments to the ATO. On Friday, Mr Hammoud withdrew two matters relating to the Buildev companies and another matter relating to BD (Qld) Project, an associate company of the Buildev Group.
In relation to the proceedings against Buildev Development Qld, Mr Hammoud said: "The debt has been paid and the party is seeking to have the application dismissed with costs." District Registrar Michael Wall granted the application and ordered the development company to pay more than $4500 in costs.
In relation to the two other matters against Buildev Group and BD (Qld) Project, Mr Hammoud also sought to have the ATO withdraw from the proceedings, as the debt to the commissioner has been paid.
Registrar Wall adjourned those two matters until May 17, when it is expected the court will also hear about the outcome of proceedings against Newcastle Jets, Buildev Aviation, Buildev Development NSW and Hunter Valley Sports Group.
Frequently Asked Questions about this Article…
The dispute concerned royalty distribution for the Middlemount coalmine in central Queensland. Matthew Higgins claimed about $1.2 million in royalties were inappropriately distributed and sought access to records to investigate payments. The parties reached an undisclosed settlement, avoiding a planned trial.
The article reports the dispute related to roughly $1.2 million in royalties that Matthew Higgins alleged had been inappropriately distributed.
The proceeds were paid to a company called Oceltip. Oceltip is 75% owned by Rebecca Tinkler (Nathan Tinkler’s wife) and 25% owned by Ruth Higgins (Matthew Higgins’ wife). Higgins had sought access to Oceltip's records amid concerns some royalty payments might have gone to Nathan Tinkler’s private companies.
No. Proceedings in the Supreme Court in Brisbane were adjourned twice while last-minute negotiations took place, and the parties reached an undisclosed settlement on the day the trial would have proceeded.
The ATO had been pursuing several of Nathan Tinkler’s companies, including the Newcastle Jets and parts of the Buildev Group, over unpaid debts. The ATO formally withdrew from a number of proceedings after informing the Federal Court that debts had been paid.
Yes. In Federal Court filings, the ATO’s representative said the Newcastle Jets and some Buildev companies had made payments to the ATO. As a result, the ATO withdrew certain matters and sought dismissal of others on the basis the debts had been paid.
Yes. District Registrar Michael Wall granted an application in relation to Buildev Development Qld, ordering the development company to pay more than $4,500 in costs. Two other matters involving the Buildev Group and BD (Qld) Project were adjourned until May 17, when further outcomes are expected to be heard.
From the article, investors should note that the specific disputes mentioned were either settled or adjourned and that the ATO has withdrawn from some proceedings after payments were made. The article points to upcoming court attention (for example, the May 17 adjournment) and ongoing developments involving entities such as Newcastle Jets and Buildev-related companies, so investors following these businesses may want to monitor court outcomes and official company announcements.
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