Beleagured NZ Herald publisher APN News and Media is going to the High Court to challenge a $48 million tax ruling from Inland Revenue.
The company has been involved in a dispute with the IRD regarding certain financial transactions involving tax of $48m for the period to December 2012. The IRD is seeking to impose penalties of 50 per cent plus interest, on top of the original tax bill.
The Adjudication Unit of the IRD has agreed with the tax department's position on the bill, APN told the NZX this morning.
APN has tax losses of $32m available to offset any outstanding tax owed, the company said.
In response to the Adjudication Unit's ruling APN will begin litigation in the High Court to defend its position in relation to the matter, it said.
Last week APN has posted a significant annual loss amid declining revenues and written down its New Zealand and Australian publishing assets by A$510 million (NZ$628m).
The media company - which saw its chairman, chief executive and three other directors resign last week after a disagreement with major shareholders - reported an A$455.8m statutory annual loss for 2012. The company experienced drops in revenue and earnings over the year.