Chinese tycoon Huang Xiangmo ‘distanced himself from business empire’ to dodge Australia tax bill
- Tax office accuses Huang of restructuring affairs to distance himself from his Australian business empire and ‘grossly understating’ his income
- Notices sent to major casinos in bid to claw back money held on tycoon’s behalf
The Australian Taxation Office has accused controversial Chinese businessman Huang Xiangmo of intentionally setting up complicated business structures in Australia to frustrate efforts to recover money from him.
In documents filed with the federal court, the ATO, which has hit Huang with a A$140 million (US$104 million) tax bill, said it had concerns that Huang “intentionally structured his asset holdings in such a fashion so as to delay or hinder recovery by creditors”.
“For example, the commissioner [of taxation] is concerned that the trusts and corporate entities associated with Mr Huang mask the true level of control Mr Huang is able to exert over those trusts and corporate entities,” the senior ATO officer Yi Deng said in an affidavit filed with the court.
The affidavit and an outline of the ATO’s arguments, released by the court on Tuesday evening, also reveal the ATO’s concerns that Huang had restructured his affairs to distance himself from his Australian business empire and had “grossly understated” his income.
They reveal that Huang’s wife, Huang Jiefang, and their son, Jimmy Huang, have both recently left Australia.