Billionaire wins appeal overturning A$23.4 million tax bill tied to Tasmania's Woolnorth dairy estate

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. However, tax authorities later argued that additional transactions and share transfers made before the deal was finalised meant more tax had to be paid. By July 2021, the Tasmanian State Revenue Office had informed lawyers representing the companies that further payments were du...