Terri Irwin 'linked to tax criminal'By Tuck Thompson

Terri Irwin linked to crime figure, documents claim
Deal allegedly involved tax minimisation scheme
Terri to "sell zoo and return to US"

CROCODILE Hunter Steve Irwin's wife Terri allegedly authorised a complex business deal involving a former tax commissioner jailed for bribery and fraud, court documents claim.

The deal involved a tax minimisation scheme involving an offshore bank set up by disgraced former tax commissioner Nick Petroulias, who was convicted of defrauding the Commonwealth in December.

The claim was contained in an affidavit signed by Mrs Irwin's Brisbane accountant Tony Lovett.

Mr Lovett claimed he had meetings with Petroulias as far back as May 2004 to set up "business structuring arrangements" on behalf of Mrs Irwin.

When the alleged arrangements were renegotiated in June 2006, Mr Lovett went to Mrs Irwin and Australia Zoo manager Frank Muscillo to get their approval.

"I received instructions to proceed and the required forms were completed and executed," Mr Lovett said in his affidavit.

At the time, Petroulias was being prosecuted for bribery, corruption and abusing his position as an assistant tax commissioner.

Steve Irwin, who was killed by a stingray four months later, did not sign the documents.

A spokeswoman for Mrs Irwin declined to respond to questions about why she and Mr Muscillo were involved with Petroulias.

However, Mr Muscillo has denied he or Mrs Irwin had done anything "illegal or deceitful".

"We certainly never pursued any illegal means to evade paying tax," he said.

He said the business arrangements were to protect employees and business assets.

Mrs Irwin has previously denied knowledge of the matter.

She and Mr Muscillo were yet to file a formal defence.

Mr Lovett's affidavit is evidence in a law suit currently before the Victorian County Court.

Debt collection company Alyssa Treasury is suing Australia Zoo for $2.5 million and Mrs Irwin for $60,000 for allegedly failing to pay bills of exchange connected to the tax scheme.

Australian Taxation Office representatives have attended hearings in the court but have declined to say whether they were investigating the scheme.

Victorian Judge Maree Kennedy has refused to move the lawsuit to Queensland, as requested by Mrs Irwin's legal team, and has set aside three weeks in October for a trial.

Other documents lodged in the court confirmed Mrs Irwin and Mr Muscillo intended to "vigorously defend" themselves and would deny they signed papers authorising the scheme.

Mr Lovett's affidavit claimed the scheme involved HQZ Argentum, an offshore bank set up by Petroulias while he was living in New Zealand.

A separate affidavit signed by Alyssa director Wayne Levick claimed Mr Lovett was paid $330,000 to set up the deal.