Huang Xiangmo, Chinese billionaire faces bankruptcy after ATO tax bill

The Tax Office is seeking to bankrupt the Chinese billionaire, Huang Xiangmo.

It will consider court action in Hong Kong to recover his $140.9 million tax bill.

Last month the ATO sought orders in the Federal Court in Sydney to freeze the local assets of the exiled billionaire.

Huang Xiangmo is a central figure in the alleged NSW corruption watchdog's investigation into the $100,000 Labor Party donation in an Aldi bag.

The ATO sought urgent orders against Huang and his wife Jiefang as it seeks $140 million in allegedly unpaid tax and penalties.

The Chinese property developer has denied he's ever shopped at Aldi, let alone donated $100,000 cash to the Labor Party.

The inquiry at ICAC has heard that Huang, whose Australian resident return visa was cancelled last year, was the alleged donor of the cash delivered in an Aldi bag after a 2015 fundraising dinner.

As a developer, Mr Huang was not allowed to make political donations.

His Australian permanent residency visa was cancelled last December for reasons including character grounds.

"Both Mr Huang and Mrs Huang are now out of the jurisdiction," the ATO's barrister, Anthony Mcinnerney, SC, told the court last month.