Tom Zhou, who gained notoriety as Mr Chinatown, has been hit with a considerable tax bill by Australian authorities. Zhou, currently serving a prison sentence in China, faces the prospect of settling millions of dollars in tax evasion upon his release.
The news was originally brought to light by famed Australian publication The Herald Sun, revealing Zhou’s gambling enterprise in Australia had avoided paying millions of dollars in taxes. An influential junket partner to Crown Casino Melbourne, Zhou accumulated an impressive AUD 45.4 million in 2012 and 2013 alone through his Australian operations. However, the Australian Tax Office has stated that Zhou only disclosed an income of AUD 14,000.
Additional investigations by the ATO also found that Zhou’s wife earned more than AUD 62.5 million from 2008 to 2014, but only reported an income of AUD 370,000.
Zhou previously informed regulators that additional income was the result of loans from his Chinese companies. Nevertheless, the ATO has since determined this to be false.
As a consequence, Zhou will be required to pay AUD 54 million (approximately $35 million in USD, according to the current exchange rate) to the Australian government once he completes his prison term.
Records Show that Mr. Chinatown Partook in Numerous Unlawful Deeds
Mr. Chinatown was apprehended in Fiji in 2020 under an Interpol red notice warrant. He faced charges such as money laundering, overseas influence operations, and severe crimes like human trafficking and illicit drug trade. Further reports state that Zhou even attacked a rival business associate with sulfuric acid, causing lasting injuries to the victim.
Zhou was eventually deported to China and sentenced to an unspecified prison term. Early this year, Australia’s Federal Court froze $30 million worth of assets situated in Melbourne, owned by Zhou and his family.
Before his arrest, Zhou was involved with Crown Resorts, a prominent Australian casino establishment recently charged with several regulatory breaches.
The investigation into Crown revealed a series of anti-money laundering infringements and dubious transactions, forcing the company to put remedial measures in place. The tumultuous state of Crown allowed US private equity giant Blackstone to take over, and it is now working towards revamping the company following these examinations.
Some observers in the industry connect the regulatory tightening around Crown Resorts and Star Entertainment with the noticeable decline in visits from wealthy Chinese tourists.
