Entertainment promoter, Glenn Wheatley, has revealed to the Supreme Court how a $150,000 debt led to a $500,000 tax rout.

He added that he was approached by a lawyer bearing a plan to send his earnings offshore and avoid paying tax after hearing of his financial woes. He advised him that he could send his money offshore to avoid paying a high rate of tax.

Mr. Wheatley has initiated posing evidence in the Victorian Supreme Court trial of solicitor Paul Gregory who alleges himself as not guilty to two counts of defrauding the commonwealth and one count of dishonestly causing a risk of loss to the commonwealth.

The Crown alleges Gregory assisted Mr. Wheatley avoid paying tax on over $650,000 in income the promoter incurred from managing singer John Farnham's Talk Of The Town tour in the 1994 and 1995 financial years and promoting a boxing match involving then world champion Kostya Tszyu in Melbourne in 2003.

He claimed that he first met Mr. Gregory after he had given a speech at a function in 1994 detailing his financial woes.

“I believe I was told I'd be paying a tax on this money in Switzerland of between 11 to 15%, the level of tax in Australia was around 47 per cent. I was shown that I would be better off”, Mr. Wheatley revealed.