Alesco settles IRD tax case

TOM PULLAR-STRECKER
Last updated 13:43 17/02/2014

Relevant offers

Industries

Oxford professor sees entrepreneurship and science hand-in-hand Webstock technology conference brings high drama to the stage of the St James Mondelez's global $4 billion cost-cutting drive behind Dunedin Cadbury factory closure Government is 'wasting money' on oil companies who have already ditched NZ - Green MP Whittaker's won't step into the Dunedin chocolate void left by Cadbury New Zealand directors worried by everyday risks Workplace leaders need to be better prepared for jobs disruption Shortage of retail and restaurant workers becoming acute Kiwibank Fintech Accelerator first step into growing NZ fintech sector Police miss deadline to train all officers in the fight against cyber-crime

Australia's DuluxGroup says it has reached an out-of-court settlement with Inland Revenue over a long-running tax dispute.

The dispute between its New Zealand subsidiary, Alesco, and Inland Revenue had been seen as a test case for about $300 million of disputed tax payments involving other businesses, including Telstra and MediaWorks.

Inland Revenue had challenged the use of optional convertible notes (OCNs) by Alesco to minimise its tax bill when funding two acquisitions.

The High Court and Appeal Court ruled in favour of the tax department, deciding the funding mechanism was an abusive of tax law, but Alesco last year obtained leave to appeal to the Supreme Court.

DuluxGroup said the confidential settlement it had reached with Inland Revenue would lead it to pay a sum that was "towards" but less than the A$12.7m (NZ$13.7m) that it had set aside as a provision in the event of an adverse ruling by the Supreme Court.

The company said it would provide further details on the settlement when it reported its interim results in May.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content