Irwin family fights amid rumours of Terri's US deal

THE decision by the late Crocodile Hunter Steve Irwin's father Bob to leave the famed Australia Zoo is believed to be linked to plans by Terri Irwin to sell the property.

Mrs Irwin is believed to be planning to sell the Queensland zoo and relocate to her native US with children Bindi and Robert.

Zoo insiders claim the rumoured sale to Animal Planet and plans for a $100-million Disney-style wildlife theme park is the reason why Bob Irwin recently severed ties with the zoo he started 32 years ago.

Mr Irwin quit the zoo, releasing a statement saying he did so to "keep his son's dream alive".

Animal Planet is owned by US-based global media and entertainment company Discovery Communications (DCI), which is believed to have contributed financially to the zoo.

An Australia Zoo spokesman denied claims Mrs Irwin was planning to sell the zoo and relocate to the US with her two children.

However, she refused to comment on future plans that might involve Animal Planet, after the zoo announced it was expanding from 28ha to 400ha.

Irwin - who died in 2006 - was believed to have been planning to build a Crocodile Hunter Park with rides and interactive exhibits.

Meanwhile, the legal woes continue for Mrs Irwin, who is being sued by debt collection agency Alyssa Treasury Services.

Mrs Irwin's accountant Tony Lovett signed an affidavit alleging she authorised a complex tax minimisation business deal involving former tax commissioner Nick Petroulias, who has been jailed for bribery and fraud.

Petroulias set up an offshore bank account as part of a "business structuring arrangements" on Mrs Irwin's behalf in 2004.

When the alleged arrangements were renegotiated in June 2006 Mr Lovett went to Ms 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.

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.

Mrs Irwin has previously denied knowledge of the matter. A spokeswoman said she and Mr Muscillo will "vigorously" defend the claims.

Alyssa Treasury is suing Australia Zoo for $2.5 million and Mrs Irwin for $60,000 for allegedly failing to pay bills of exchange.