The ATO is targeting companies controlled by Hong Kong billionaire Li Ka-shing, who is Asia’s richest man, according to a report.
The tax office is mounting a case against Li, according to The Australian, over profits his companies made in the power, gas and water industries, seeking $776 million in unpaid tax and penalties.
Li is the chairman of the property, telecommunications, utilities and ports giant Cheung Kong Holdings and is valued by Forbes at $US31 billion.
The Federal Court recently ruled in the ATO’s favour against two Cheung Kong controlled companies over unpaid income tax between 2000 and 2009, with $396m against Power Asset Holdings and $380m against Cheung Kong Infrastructure.
Reportedly the companies stopped talking to the ATO in January, and it will need to take the action to have its debts repaid.
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