A wealthy Indonesian man has accused Arnold Bloch Leibler of providing poor legal advice resulting in the filing of incorrect tax returns and ultimately an audit into his affairs by Australian tax officials.
Benny Tabalujan alleges that he would have relocated to Singapore if Arnold Bloch Leibler had provided proper advice on the tax implications of a trust set up in Indonesia to disperse the estate of his late father.
Arnold Bloch Leibler is being sued over legal advice it provided to the son of an Indonesian businessman. Dominic Lorrimer
The former MinterEllison lawyer claims Arnold Bloch Leibler solicitors advised him to create a trust to hold the Indonesian assets, and that he did not need to end his Australian residency to avoid more tax. He claims the firm provided him with a link to an Australian Taxation Office website and an example scenario which was “wrong and incorrect”.
Arnold Bloch Leibler is an influential law firm based in Melbourne which advises a range of major companies and wealthy individuals.
In 2019, The Australian Financial Review reported that it advised 35 of the country’s 200 richest people. It is also well-connected politically, and has represented Tony Abbott, Bill Shorten and Peter Dutton in recent years. It is noted for its tax work, and senior partner Mark Leibler is a specialist in the area.
A spokeswoman for the firm said it would defend the claim, which it described as “wholly misconceived”. The firm has not been served with the proceedings.
Tabalujan is the son of Indonesian business Carlo Tabalujan, who controlled a range of companies involved in manufacturing and distribution. He died in 2011, and left a will dealing with his assets in Indonesia.
Tabalujan claims Arnold Bloch Leibler breached the duty of care that it owed him as a client and is seeking unspecified damaged.
In filings with the Victorian Supreme Court last week, he says the Arnold Bloch Leibler advice caused him to file incorrect tax returns from 2018 to 2021. These eventually caught the eye of the ATO, which launched a review of the affairs of Tabalujan, his wife and their private company. This resulted in an increased tax bill, and interest charges on the missing tax.
“Had [Arnold Bloch Leibler] not breached the terms of their retainer and duty of care to Tabalujan and had instead advised [on the tax implications of Australian residency], he would have ceased residing in Australia and recommenced residing in Singapore,” his filings read.
Tabalujan, who could not be reached for comment, also claims he would have chosen to hold the Indonesian assets in his own right, rather than through the trust advised as by Arnold Bloch Leibler, and would have avoided having to pay tax on those assets.
