Business Story
James Hardie tax appeal dismissed, could cost $370 million
- From: AAP
- September 01, 2010
BUILDING products maker James Hardie Industries has lost its appeal against an amended tax office assessment that could cost it more than $370 million.
Justice Margaret Stone of the Federal Court dismissed the appeal by RCI, a wholly owned James Hardie subsidiary, relating to an assessment of RCI's 1999 income tax by the Australian Tax Office issued in 2006.
"On the evidence in this proceeding, I am satisfied that (James Hardie) both directly and through their employees and advisers were involved in the scheme identified by the commissioner, and have concluded that those persons entered into the schemes...with the dominant purpose of enabling RCI to obtain a tax benefit," Justice Stone said in her judgement.
RCI appealed the amended notice of assessment in the Federal Court last September.
Shares in James Hardie went into a trading halt at 2.00pm (AEST) and remained suspended.
James Hardie said earlier on Monday that if the Federal Court found against RCI, it was likely a charge of around $US330.4 million ($371.3 million) would need to be recorded, while the appeal process continues.
The company said it had treated all payments made up until June 30, 2010, and related accrued interest receivable, as a deposit.
James Hardie said on Monday it would continue to comply with all debt covenants should a charge be required to be taken.
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