The partly-built Pacifica with its twisted facade. Photo / Jason Oxenham
The partly-built Pacifica with its twisted facade. Photo / Jason Oxenham
A hearing on freezing orders of assets controlled by Chinese developer Min Wang, whose company is behind New Zealand's tallest apartment building The Pacifica, is due to return to court today.
The Australian Tax Office said the case Deputy Commissioner of Taxation v Min Wang would then resume in the Federal Court of Australia.
"It is a matter of public record that the matter is next listed for hearing in the Federal Court on November 25," a spokesperson said, referring to the ex parte freezing orders which were made on October 28.
The tax office said it could not comment on the tax affairs of any individual or entity due to its obligations under Australian taxation secrecy laws.
The second respondent in the case is LH 7 (SFM) and the third respondent is LH 7 168 (Victoria).
Min Wang of Hengyi. Photo / Hengyi
Lu Xing, a director of Hengyi on Collins St, Melbourne, told the Herald: "There is no impact on the Pacifica as it is a totally separate project and entities. I have issued some relevant information to our stakeholders regarding the Pacifica in Auckland."
But a request to see what was sent to buyers who paid 10 per cent deposits on some of the nearly 300 units in The Pacifica between Gore St and Commerce St were denied.
Liz Scott, New Zealand general manager of Hengyi, said: "Any communication we provide to our purchasers on any matter is not conveyed via the media."
Scott was asked how many Pacifica units had been pre-sold, what dollar value in deposits was taken, where those deposits were held and what terms and conditions in the contract were in the event of default.
Liz Scott of Hengyi with Dean Fossey who no longer works there. Photo / Michael Craig
In response, she replied: "The completion of The Pacifica and Hengyi's business activities are unaffected by the ATO actions. The Pacifica project is fully funded with full purchaser obligations and commercial protocols being adhered to."
The Pacifica is to be a 57-level 178m 282-unit block. The structure is now around 70 per cent complete and cladding has gone on to some of the structure.
The Federal Court in Melbourne last month heard a claim that Min Wang had "made false statements" in her income tax returns for the 2014 and 2015 income years about her interests in China by representing that she did not have assets located outside Australia with a total value of more than $50,000 and did not have an interest in any controlled foreign company.
Assets specifically named as frozen are: • 36 Normanby St, Brighton, Victoria, Australia. • A 2014 Aston Martin. • A 2016 Rolls Royce. • a A$106m loan.
Min Wang is barred from selling any of these assets, whether they are in her name, solely or co-owned, the decision said.
Wang and her husband, Liang Chen, who lives in China, operate a property development business through a group of companies in China known as the Shandong Hengyi Group.
The Melbourne-based arm is called Hengyi and is developing more than 1000 apartments in a 72-storey tower in Swanston St, Carlton, as well as the Auckland project.
There are a number of reasons for being "satisfied there is a real risk of dissipation of assets", including Wang's close ties with China, the judgment says.
"The amount of tax liability is very significant in circumstances where she has both the means and the motive to remove assets because of her control of each of the corporate entities and of the trusts of which those corporate entities are trustees," the decision said.
