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James Hardie to appeal tax ruling
James Hardie Industries will appeal a Federal Court decision that upheld a ruling that the building materials makers owes back taxes of about $US318 ($339) million.
The New Lawyer
JAMES Hardie Industries will appeal a Federal Court decision that upheld a ruling that the building materials makers owes back taxes of about $US318 ($339) million. To continue reading the rest of this article, please log in. Create free account to get unlimited news articles and more! The company said its subsidiary RCI Pty Ltd will appeal to the Full Federal Court of Australia the ruling that upheld the Australian Tax Office’s ruling that RCI owed the back taxes from the year ended 31 march 1999. James Hardie said that despite the appeal, it was likely to be required to record a charge “as a result of the unfavourable decision”. Had the company been required to take this charge at 30 June 2010 (its last reporting date), the charge would have been an estimated amount of US$330.4 million (A$387.7 million). The company said it will remain in compliance with its debt covenants should a charge be taken. However, except for quarterly payments by RCI of interest on the unpaid balance of the amended assessment - US$168.8 million (A$184.3 million)), no cash will be required to be exchanged between RCI and the ATO until the matter has been ultimately resolved. James Hardie said it will provide an update on the charge when it announces its fiscal year 2011 second quarter results on 15 November. It said it would not make further comments on the matter.
