By Annette Shailer
Foster’s Group announced last week (Nov 25) that it intends to contest income tax assessments it has received for primary tax of $49.5 million and interest of $17.1 million.
Foster’s said it also expects to receive additional assessments for penalties of between $12.4 million and $24.7 million.
The assessments relate to a capital loss in the 2004 financial year.
The beer and wine giant said that, in accordance with the Commissioner’s published guidelines, the company expects to pay $33.3 million to the Commissioner in respect of the assessments for primary tax and interest by December 21, 2010. This amount is fully refundable, with interest, in the event that the matter is resolved in Foster’s favour.
“Although additional assessments are expected in respect of penalties, Foster’s does not anticipate any further payment being required pending resolution of the matter,” Foster’s said in a statement.
“Foster’s is confident of the position it has adopted in claiming the capital loss and intends to defend it’s position vigorously.”