Australian court orders Li Ka-shing's firms to pay AUD 776 million in taxes, penalties
The Federal Court in Australia ordered Cheung Kong Infrastructure Holdings and Power Asset Holdings Ltd to pay AUD 776 million or USD 726.92 million in unpaid taxes and penalties. Both companies are owned by Li Ka-shing's Cheung Kong (Holdings) Ltd. Li Ka-shing is Asia's wealthiest man.
The taxes were due from the hundreds of millions of dollars made from the Australian investments of both companies. The investments were made in the power, gas and water industries in Australia.
Federal Court Judge Michelle Gordon ordered Cheung Kong Infrastructure to pay AUD 380 million and Power Asset Holdings to pay AUD 396 million to the Australian Tax Office. The fines were the result of unpaid income taxes from 2000 to 2009. It also included penalties for not filing documents with the tax regulator.
Cheung Kong Infrastructure Holdings Chief Corporate Affairs Officer Wendy Tong Barnes told Reuters through email that they planned to challenge the court's decision. Li Ka-shing owns half of South Australia Power Networks and has a 19% stake in natural gas firm Evestra Ltd.