Exiled Labor supporter ’grossly understated’ income to tax office
An exiled Chinese billionaire with a huge tax bill in Australia “grossly understated” his income to the tune of $170 million, according to the Federal Government.
NSW
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An exiled Chinese billionaire with a huge tax bill in Australia “grossly understated” his income to the tune of $170 million, according to the Federal Government.
Huang Xiangmo, who is currently at the centre of a NSW Independent Commission Against Corruption probe into political donations to NSW Labor, remains in Hong Kong after having his Australian permanent residency and citizenship bid knocked back earlier this year.
The Federal Court has granted an urgent order sought by the Australian Taxation Office to freeze his local assets as it attempts to claw back $140 million in unpaid tax.
Documents released by the court yesterday reveal Mr Huang’s legal team said he had only earned $1.3m over three years from 2013-15.
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The 50-year-old’s legal team also asserted he did not own assets more than $50,000 outside of Australia.
But the ATO says Mr Huang understated his income by more than $171 million over a three-year period.
The ATO argued he had transferred tens of millions of dollars in and out of Australia over the last few years, making the declarations “difficult to reconcile”.
The documents also reveal the level of concern the government held for Mr Huang’s capacity to leave them high and dry.
“The ATO formed the opinion during the audit into Mr Xiangmo’s taxation affairs … that Mr Xiangmo had ‘grossly understated’ his income and made false or misleading statements to the Commissioner in respect of the income tax returns,” the documents state.
“The commissioner’s view is Mr Huang made false and misleading statements.”
Xiangmo disputes that there was any underreporting to his income.
The government also feared his substantial business empire in China and Hong Kong gave him the “means to frustrate the court’s processes.”
The ATO submitted “there is a real danger that Mr Huang will dispose of, deal with, or diminish in value the assets over which he has control” and escape meeting his debts.
The documents go on to allege Huang began transferring tens of millions out of Australia once he was audited in 2017.
Justice Anna Katzmann, who issued the freeze on the assets, said she was “satisfied an order should be made” because without it “assets will be removed from Australia.”