Mr Li Zhang: His Life and Journey
From childhood during China’s Cultural Revolution to building a property business in Australia, Mr Zhang’s life spans education, migration, enterprise and years of litigation. Through setbacks, business collapse and imprisonment, he has remained active, positive and purposeful, continuing to learn, develop his skills and work towards the future. These six chapters trace his journey and his continuing efforts to challenge his convictions.
CHAPTER 1 — Early Life and Education
Childhood in northeast China
Mr Li Zhang was born on 10 January 1963. In 1968, during China’s Cultural Revolution, he moved with his parents from the city to a mountain village in northeast China. He was five years old.
The family spent approximately ten years in the countryside, where winter temperatures could fall below −30°C, before returning to the city in 1978.
University and early career
In 1980, Mr Zhang entered the Northwest Telecommunications Engineering Institute, now known as Xidian University. After completing his studies, he worked in government employment in Beijing for approximately six years.
In early 1990, he moved to Australia, beginning a new chapter in his life
CHAPTER 2 — Building a Life in Australia
A new beginning
Mr Zhang arrived in Australia in early 1990 and established High Trade Company Pty Ltd, known as Hightrade (HT). He became an Australian citizen in July 1994.
His work encompassed property investment, development and construction. After obtaining his builder’s licence, he invested in, developed and built more than 50 property projects across New South Wales.
Kogarah Town Square
Among his major projects was Kogarah Town Square (KTS) in Sydney. The development combined apartments, shops, commercial offices, a public library, a public square and underground parking.
It formed part of the renewal of Kogarah’s town centre and incorporated solar power and other environmental features.
The Hunter Valley resort
Through Resort Hunter Valley Pty Ltd (RHV), a Hightrade subsidiary, Mr Zhang developed the hotel and golf resort originally known as Crowne Plaza Hunter Valley, now Rydges Resort Hunter Valley. It first opened on 5 October 2006 in the Hunter Valley wine region.
The resort brought together a 150-room central hotel, conference and exhibition facilities, restaurants, bars, a spa and gym; 175 villas and townhouses across three villages; and an 18-hole championship golf course.
The resort business employed about 300 people.
The Chippendale development
Another project was the apartment development at 12–26 Regent Street, Chippendale, near Sydney’s Chinatown, undertaken through JKC Developments Pty Ltd (JKC), also a Hightrade subsidiary.
CHAPTER 3 — The Tax Disputes and Business Collapse
Azure and the audits
In September 2003, HT & Li 6 Pty Ltd (HT6), backed by Mr Zhang, successfully tendered $20 million for IHG’s former Holiday Inn hotel property in Newcastle. It was redeveloped into three residential buildings collectively known as Azure.
On its first public marketing day in early 2004, Azure secured more than $66 million in off-the-plan sales within six hours. By late 2005, as completion approached, local high-end apartment prices had fallen by more than 10%. Some buyers demanded release from their contracts and refunds of their deposits, threatening action against Mr Zhang if refused. Their demands were rejected, and a serious dispute followed.
In February 2006, the Newcastle ATO began auditing Mr Zhang and thirteen associated companies. By October, several companies had entered external administration and were later liquidated. Mr Zhang says the prolonged audits and resulting pressure on cash flow contributed to their collapse.
Senior ATO intervention
Mr Zhang’s accountant, Mr Stephen Bladwell of PKF, complained to the Commissioner of Taxation. A meeting followed on 2 March 2007 with Assistant Commissioners Mr Paul Tregillis and Ms Katie Welsh. Mr James Webeck of the Sydney ATO was subsequently appointed to oversee the audits.
Several disputed issues were then resolved or revised. Millions of dollars in withheld GST refunds were released, Hightrade’s tax demand was reduced to zero, and the ATO agreed to reduce the approximately $2.6 million tax demand against Mr Zhang’s elder brother, Mr Wen (George) Zhang, to zero.
New Tax Debt Issued Against RHV
On 4 June 2008, Ms Merran Kemp of the Newcastle ATO suddenly assessed RHV for approximately $16 million in GST. Penalties and interest pushed the claimed debt beyond $36 million.
At an urgent meeting at PKF’s Sydney office on 16 June, Assistant Commissioner Mr Nick Roussos accepted a proposal to withdraw the assessment, subject to a report and approval.
Awaiting withdrawal, Mr Stephen Bladwell lodged objections on 4 and 7 August to meet the 60-day deadline. Mr Nicholas Seow was appointed to review the matter.
The assessment was leaked to the Newcastle Herald. RHV secured a Supreme Court injunction stopping publication. Its lenders then received emails from unknown senders warning of credit risks to the Hightrade group over the same assessment. RHV reported the events to the Taxation Ombudsman, the AFP and the ATO’s internal fraud unit. An internal investigation into the Newcastle ATO followed.
The Commissioner suspended debt recovery pending the proposed withdrawal and review.
Federal Court Proceedings and the Mortgage
For reasons unknown to Mr Zhang, the ATO suddenly began pursuing the disputed debts in late February 2009, issuing statutory demands and garnishee notices to RHV’s banks while the proposed withdrawal and objection review remained pending.
On 12 March 2009, Ernst & Young filed Federal Court proceedings on behalf of RHV and Hightrade to stop the ATO’s debt demands. Mr Zhang urgently returned to Sydney from Hong Kong on 28 March for the hearing scheduled for 31 March.
At a meeting with the ATO’s Sydney legal branch on 30 March, Mr Zhang accepted the Commissioner’s proposal to grant mortgage security over RHV’s resort while reconciling the accounts with the ATO. The Federal Court proceedings ended by consent on 31 March.
Assistant Commissioner Mr Grahame Tanna led the ATO’s discussions. Correspondence dated 31 March arranged a further meeting for 23 April. Mr Zhang scheduled his return flight back to Hong Kong for 24 April, after that meeting.
Newcastle ATO Searches After the Mortgage Was Accepted
On 14 April 2009, Mr Alan Crowe of the Newcastle ATO applied for eleven search warrants. The next day, ATO officers and the Australian Federal Police (AFP) executed six, searching Hightrade Business Centre, Mr Zhang’s former wife’s residence and other premises.
Truckloads of documents and electronic material, including the business centre’s servers, were seized and held at the Australian Government Solicitor’s (AGS) Sydney office pending privilege claims and related court proceedings.
Mr Zhang says the searches aimed to jeopardise the agreement with the Commissioner and stop reconciliation of the accounts from exposing problems with the Newcastle ATO’s assessments. He says approximately twenty further warrants were executed in 2009–2010 by Newcastle ATO with AFP, covering banks, professional advisers, staff and others associated with him.
The 23 April 2009 Meeting
Despite the searches, Mr Zhang attended the scheduled meeting at EY’s Sydney office on 23 April 2009. More than fifteen people attended, including NAB representatives and its lawyer, EY, his company director and his other legal advisers.
The ATO’s representatives and advisers included Assistant Commissioner Mr Grahame Tanna from Sydney, debt collection director Mr Ross Burns from Brisbane, Mr Kim Barry from Adelaide, AGS solicitor Mr Michael Brann and senior litigator Ms Kristine Nash from Sydney.
Mr Zhang again agreed to grant the Commissioner a second mortgage, with NAB retaining priority, and accepted the security terms.
On 24 April, he returned to Hong Kong on his previously arranged ticket and continued his business activities in China. His legal team and advisers continued finalising the mortgage documents in Australia. On 6 Agustst 2009, that mortgage was granted and ato's interesrt was registeed on the RHV's property titles.
The 29 April 2009 Supreme Court Proceedings
Despite Mr Zhang accepting the Commissioner’s proposal for a second mortgage and the ATO agreeing to suspend statutory demands and garnishee notices to his banks, Mr Ross Burns and the Newcastle ATO continued threatening and pursuing recovery. RHV and Hightrade commenced Supreme Court proceedings on 29 April 2009 to set aside the statutory demands.
The Court dismissed the proceedings on 22 June 2009. The practical result was that the ATO could continue pursuing the claimed GST debts even while the assessments remained disputed as wrong or defective. Mr Zhang had to pay or reach an arrangement with the ATO while pursuing his objections. Disputing the assessments did not itself stop recovery.
Personal Tax Demands Trigger Bank Loan Defaults
The dispute remained unresolved despite complaints to Deputy Commissioner Mr Shane Reardon.
On 10 June 2009, Mr Edward Mazzoni, Mr Zhang’s spokesperson, emailed after discussions with his professional advisers. The accounts checked had proved 100% correct. Edward and lawyer Mr Mitchell Mathas feared the ATO would conceal the errors in the assessment and destroy the company, leaving “no one left behind to complain.” They urged media publicity, with draft advertisements prepared for Mr Zhang’s approval.
Mr Zhang stopped the publicity. Instead, on 15 June, Mr Stephen Bladwell of PKF wrote at his request to Commissioner Mr Michael D’Ascenzo, seeking a meeting whenever and wherever suited him. Before any meeting occurred, further assessments arrived.
On 22 June 2009, the day the Supreme Court dismissed the proceedings, Ms Merran Kemp issued assessments claiming approximately $7 million from Mr Zhang and $3 million from his former wife. She was the officer responsible for RHV’s assessment. Statutory demands and garnishee notices to their banks followed the next day, then further Supreme Court proceedings.
Assessments against Mr Zhang and his family exceeded $20 million—$7 million against him, $3 million against his former wife, $8 million against his younger brother and $2.6 million against his elder brother. Across the group, they exceeded $200 million.
He personally guaranteed borrowings for the group exceeding $100 million, including approximately $55 million from NAB, $36 million from ANZ, $40 million from Westpac and $40 million from Capital Finance. He says the personal tax demands triggered loan defaults and exposed the group to bank enforcement.
The collapse of the remaining businesses
Mr Zhang says false tax assessments created debts that triggered loan defaults and drove the banks to enforce their securities. The searches had already disrupted his businesses.
NAB sold the Hunter Valley resort, in which approximately $300 million had been invested, for about $45 million. ANZ took over a development valued at approximately $50 million, while Westpac put his properties into mortgagee sales. Only Capital Finance was repaid through the normal course of business.
His remaining businesses collapsed in 2009–2010, with the post-GFC market downturn compounding the losses. He says the Newcastle ATO forced him out of Australia’s property industry, then turned its false assessments into a criminal case to conceal its wrongdoing and imprison him.
CHAPTER 4 — China and a New Start in New Zealand
Investing in China
Mr Zhang began investing in China in 2003, with former Australian Prime Minister Mr Paul Keating as his adviser. From April 2009, with his Australian bank accounts frozen, he concentrated on those projects to support his family and fund continuing litigation against the ATO in Australia.
Although locally approved, his golf-course developments were undermined by the new central government’s prohibition on such development. After many years overseas, he struggled to readjust to conditions in China and suffered a persistent cough. He settled in New Zealand in late 2015.
CHAPTER 5 — Arrest, Pre-Trial Proceedings and Trial
Arrest, extradition and custody
Before 6 am on 4 April 2019, Mr Zhang was arrested in Auckland. He says a local detective then told him the Newcastle ATO sought his extradition to Australia.
For three months, he sought bail to put his businesses in order and arrange a proper handover before returning to Sydney to fight the case. Bail was refused. He says his detention caused the businesses he had rebuilt to collapse, leaving his staff and associates without his support.
With those businesses lost, he saw no further purpose in seeking release in New Zealand. Against his counsel’s advice, he voluntarily consented to return on 30 August 2019 and was extradited to Sydney on 12 September.
He later concluded that the extradition was unlawful and amounted to abduction. His counsel had warned of unfair treatment in Australia. He says the ATO’s opposition to bail and the subsequent refusals bore out that warning.
He obtained bail on 12 April 2022, after just over three years in custody.
Trial and conviction
Mr Zhang represented himself during his Sydney District Court trial, which ran from 28 November 2022 to 9 October 2023—approximately ten and a half months. He was convicted and returned to custody.
Mr Zhang was sentenced to ten years, with a non-parole period of six years and eight months. After credit for approximately three years already spent on remand, he faced a further three years and eight months in custody. He is due for release on 27 May 2027.
Sentence and further imprisonment
Before the trial, there were two pre-trial proceedings and several related appeals. These earlier proceedings form part of the history leading to the trial and are distinct from the later appeal against conviction.
Pre-trial proceedings and related appeals
CHAPTER 6 — The Conviction Appeal and the High Court
The conviction appeal
The NSW Court of Criminal Appeal (CCA) dismissed Mr Zhang’s conviction appeal on 18 February 2026. Although he believes his sentence was almost twice the applicable sentencing guidance, he chose not to appeal it. He wanted no doubt about his position that the convictions themselves were wrong.
The Proposed High Court Application and Attorney-General Review
Mr Zhang intends to apply to the High Court of Australia for special leave to appeal. His proposed grounds concern abuse of power, an unfair trial and errors of law. The Case and The Next Step pages explain these grounds, with supporting records available on the Documents page.
He also intends to seek the Attorney-General’s review of his convictions. The Case page explains this proposed step.
Continuing forward
Mr Zhang remains active, positive and purposeful, continuing to learn, develop his skills and work towards the future. He welcomes knowledge, professional assistance and encouragement from those who know him through education, work, business or friendship, and from interested readers everywhere.