The Australian Taxation Office is asking for more than $100 million from HT&E, formerly APN News and Media, over former masthead licenses from their New Zealand branch, according to a report in the National Business Review (NBR).
The NZ branch was closed as part of the demerger of NZME in June 2016 and has now received tax adjustments of $72 million plus $32 million of interest for the financial years ended 2009 to 2012, said HT&E in a statement.
The amended assessments are for the financial years ended 31 December 2009 to 31 December 2012 inclusive, with tax adjustments of $72m plus interest of $32m. The ATO is yet to determine whether any penalties will be applied. HT&E understands the ATO intends to issue further amended assessments in relation to this matter for the financial years ended 31 December 2013 to 31 December 2016 inclusive, with further tax adjustments of approximately $30m to be assessed plus interest and any penalties if applied.
HT&E intends to lodge an objection with the ATO and if necessary contest the amended assessments through litigation proceedings.
The report said that before the demerger in 2016, New Zealand’s Inland Revenue Department had planned to dispute the media group’s offsetting of non-resident withholding tax on masthead financing transactions as tax losses.
This was settled in a wider agreement with the tax authority and included the use of convertible notes with the New Zealand subsidiary. HT&E and NZME shared the cost of the $36.6 million settlement.
HT&E said it remains satisfied its treatment of this current matter with the ATO is consistent with relevant taxation legislation.