The house where Carl and Roberta Williams raised their daughter is ready to be sold and the proceeds sent to the tax office after a Supreme Court judge dismissed a last-ditch attempt for this weekend's auction to be halted.

Roberta Williams on Friday lost her bid for an injunction preventing Saturday's auction of her family home in Primrose Street, Essendon, after the gangland figure this week argued the revelations about Informer 3838 – the criminal barrister who was a registered police informer – tainted a deal her late father-in-law George Williams struck with the Australian Taxation Office.

George died in 2016 with a huge tax debt unpaid, which meant the house he left his granddaughter Dhakota – the daughter of Carl and Roberta – was this year handed over to the ATO so it could be sold and the proceeds used to pay off his debt, which currently stands at almost $960,000.

Roberta Williams (right) and daughter Dhakota arrive at the Supreme Court in Melbourne on Friday. Credit:AAP

Roberta, the co-executor of George's estate, argued in court this week that any legal advice Informer 3838 gave George was tainted because the lawyer was a registered police informer between 2005 and 2008 and was passing information about her clients onto investigators.