TROUBLED coal baron Nathan Tinkler draws money from a $1.4 billion trust held in the name of his wife, a court has heard.

Nathan Tinkler, the one-time billionaire, also declared a taxable income of just $9,834 in 2010/11, in the form of interest from bank accounts.

And he expects to have a similar taxable income for 2011/12.

Tinkler's debts hit $500 million

The structure of Mr Tinkler's wealth was revealed during a liquidator's examination in the NSW Supreme Court today.

Under questioning from counsel for the liquidators of his failed mining company, Mulsanne Resources, Mr Tinkler said he drew his money in the form of tax-free distributions from the Tinkler Group Family Trust, which he said has assets worth about $1.4 billion.

The trust holds Mr Tinkler's stake in Whitehaven Coal, but Mr Tinkler told the court the wealth of the Tinkler Group was "not really'' dependent on the value of Whitehaven shares.

He said other companies in his group held assets, including copper explorer Aston Metals, transport and infrastructure groups Hunter Ports and Hunter Rail, and horse stud Patinack Farm.

The court heard his wife, Rebecca Tinkler, was both the trustee for the trust and the unit holder.

Mr Tinkler was asked how he was able to draw money from the trust if he was not the trustee.

"Your wife gives you money from time to time,'' counsel for the liquidators, Robert Newlinds, SC, asked Mr Tinkler.

Mr Tinkler replied: "I'm very lucky, yes.''

He said he drew funds tax-free from the trust because it had paid around $100 million in tax.

The trust was created in 2007 when Mr Tinkler acquired the Middlemount coal deposit in Queensland.

Mr Tinkler said the family trust had liabilities of about $600 million.



Earlier, he told the court the debts of his Tinkler Group were about $500 million.

The examination continues.

