The Australian Taxation Office has intervened in the sale of an Obeid family home, demanding $2 million from the proceeds of the sale.
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As a result of the intervention by the ATO, Gerard Obeid and his wide Gwenda are now trying to scuttle the sale of their Hunters Hill home.
Gerard Obeid, 42, is one of the five sons of corrupt former Labor powerbroker Eddie Obeid.
Six weeks ago, in an off-market transaction, the pair quietly offloaded their Jeanneret Avenue home for $2.7 million.
However, within a week of exchanging contracts with Skye Anderson, the ATO intervened claiming that $2 million of the agreed purchase price had to be remitted to the Tax Office rather than the Obeids.
The Obeids appear reluctant for any funds to go to the ATO and they have retained the family's lawyer, David Deutsch, to act for them. The couple failed to proceed with the settlement of the house, which was due to occur last week.
Legal action now looks likely, with Ms Anderson and her husband, Clayton Utz partner Matt Anderson, keen to proceed with the purchase..
The house was purchased in 2011 for $2.5 million by Gwenda Obeid.
The Independent Commission Against Corruption heard that the $30 million the Obeid family received from a corrupt coal deal was used to finance the lifestyles and luxury homes for members of the Obeid family.
After the ICAC investigation into the Obeid family, the tax office has hit the family with a $9 million bill.
Eight of Eddie Obeid's nine children, along with his wife Judy, are fighting the Tax Office assessments.
Gwenda Obeid, along with the wives of Damian, Paul and Eddie jnr, have been hit with the largest bills. The Tax Office is pursuing Eddie Obeid's four daughters-in-law for more than $1.5 million each in tax and penalties. His sons, including Gerard, received smaller bills of about $55,000 each.
Mr Obeid and his entrepreneurial son, Moses, are not part of the current tax dispute.
However, Moses Obeid is being sued by his former law firm Colin Biggers and Paisley over a $750,000 legal bill he incurred fighting the City of Sydney Council.
The matter was before Justice Patricia Bergin, Chief Judge in Equity of the NSW Supreme Court, for a directions hearing on Friday.
Moses and his older brother, Paul, are also embroiled in legal action in the Federal Court where they are challenging their proposed examinations as part of the Australian Competition and Consumer Commission's investigation into allegations of cartel conduct in relation to the 2009 tender process for the Mount Penny exploration licence, which was at the centre of the ICAC investigation.
