Billionaire wins tax reversal over A$280m Tasmania dairy farm
The Tasmanian Full Court has overturned a tax assessment against billionaire Xianfeng Lu, canceling a A$23.4 million stamp duty bill related to the 2016 purchase of the Woolnorth dairy estate. The ruling concludes a long-standing legal battle over tax liabilities and penalties.
Why it matters
This decision provides clarity on tax obligations for large-scale foreign acquisitions and represents a significant legal victory for corporate entities against state revenue offices.
A Full Court in Tasmania has overturned a multi-million-dollar tax assessment against companies linked to billionaire businessman Xianfeng Lu. The decision cancels a disputed A$23.4 million stamp duty bill, including accumulated penalties and interest. The ruling is a major legal win for Moon Lake Investments and other companies linked to Mr Lu. The dispute arose from the 2016 purchase of the large Woolnorth dairy estate in north-west Tasmania. Moon Lake Investments Pty Ltd bought the property for A$280 million.Background on the 2016 Woolnorth acquisitionXianfeng Lu bought the historic Woolnorth property in March 2016, adding the large farming business to his wider portfolio. The deal involved buying the assets of the Van Diemen's Land Company, one of Australia's largest and oldest dairy farming operations. When the deal was first settled in 2016, Van Dairy Limited paid A$8.2 million in standard stamp duty.
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