THE Australian Tax office has welcomed former Hightrade Group executive Li Zhang copping a maximum jail term of 10 years in prison, concluding one of Australia's "longest tax fraud investigations".
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The former boss of the Chinese construction company had his bail revoked late last year after being found guilty over his role in a multimillion dollar tax fraud.
Li Zhang was found guilty of two charges after a lengthy jury trial in which he represented himself at Sydney's Downing Centre District Court.
The 60-year-old was accused of conspiring to cause loss to the Commonwealth through the plot.
During the trial, court documents showed that St George Bank lent almost $30 million to Zhang's companies for a resort development in the Hunter in 2004.
Acting Judge Anthony Blackmore repeatedly criticised Zhang for the way he handled the case without a lawyer.
After being given guidance about how to examine witnesses and what he was able to say during final submissions to the jury, the Hightrade boss acknowledged the judge's advice and said he was improving.
ATO Assistant Commissioner Jade Hawkins issued a statement on Friday welcomed the sentencing.
"Mr Zhang conspired to lodge fraudulent [business activity statements] on behalf of two companies which he was involved with," Ms Hawkins said.
"These companies were part of the Hightrade Group, which developed high-profile properties in the Hunter Valley and Sydney regions.
"The fraud involved the use of multiple related companies that grossly inflated construction costs between themselves, and ultimately failed to remit the GST to the ATO. There were also claims of company purchases that simply didn't exist."
"The sentencing of Mr Zhang, shows that no matter where you are, we will find you and hold you accountable for your actions."
Zhang was extradited from New Zealand to face the two counts of conspiracy to defraud the Commonwealth.
"Tax crime affects the whole community. This was not an ordinary business operating legitimately - it was outright tax fraud," Ms Hawkins said.
"Mr Zhang undermined genuine businesses by heavily under-quoting, and he left business creditors and employees without their entitlements."
Zhang faces a non-parole period of six years and eight months.
The former boss of Chinese construction company Hightrade has had his bail revoked after being found guilty over his role in a multimillion dollar tax fraud.
Matt Carr
Matt began his Newcastle Herald career as a cadet in 2009. He is a Walkley nominated reporter who has covered councils, police and general news rounds across the Upper Hunter, Port Stephens, Maitland, Lake Macquarie, Cessnock and Newcastle. Now his focus is on digital storytelling and breaking news.
Matt began his Newcastle Herald career as a cadet in 2009. He is a Walkley nominated reporter who has covered councils, police and general news rounds across the Upper Hunter, Port Stephens, Maitland, Lake Macquarie, Cessnock and Newcastle. Now his focus is on digital storytelling and breaking news.
