The High Court of Australia delivered its decision on the application by the Australian Taxation Office (ATO) for special leave to appeal the Full Federal Court‟s decision. The High Court of Australia refused to grant special leave and dismissed the ATO‟s application.
On 19 September 2011 James Hardie Industries SE (JHX) had been notified that the ATO had made an application for special leave to appeal the Full Federal Court‟s decision to the High Court of Australia. As a result of the decision this matter is now finalised in favour of RCI Pty Ltd (RCI), a wholly-owned subsidiary of James Hardie. The ATO is now obliged to refund A$248 million plus interest, which the company estimates to be approximately A$63 million, plus a portion of RCI‟s legal costs. The amount of A$248 million includes A$184.3 million which represents 50% of the original assessment plus general interest charges paid by RCI on the unpaid portion of the original amended assessment.
If the refund is received before 31 March 2012 James Hardie will, subject to the terms and conditions of the Amended and Restated Final Funding Agreement, contribute 35% of the refunded amount to the Asbestos Injuries Compensation Fund in July 2012.
The accounting treatment of the successful outcome of this litigation will be the subject of review during the preparation of the company‟s financial statements for the quarter ending 31 March 2012, which are expected to be released on or about 21 May 2012
http://www.traderdealer.com.au/fundamentals/jhx
Tags: ATO, james hardie, JHX, Tax refund
