Tax consultant ordered to pay $138m bill

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Auckland tax consultant John Russell has been ordered to pay a $138 million tax bill.

The Court of Appeal turned down his battle to overturn the bill after he was first investigated in the 80's for contriving a tax avoidance scheme.

PricewaterhouseCoopers tax partner John Shewan said it had gone on for decades, after a series of contested actions through the court.

"That's part of the democratic process that taxpayers have the rights to challenge Inland Revenue's position,", he told Newstalk ZB.

"In this particular case this taxpayer has been a very active litigant, has challenged just about every turn the assessments made by Inland Revenue."

John Shewan said it demonstrated how things could spiral out of control. He said there could be further appeals, so it may not be over yet.

- NEWSTALK ZB