Australia: Foster's to object to tax assessment
Australian beer and wine firm Foster's Group Ltd. said on Wednesday, 27 June 2007 it will object to an Australian tax authority assessment that could leave it with a bill of up to A$850 million ($721 million), according to Reuters.
The brewer said it will receive assessments for total primary tax of $548.7 million and penalties and interest of $302 million at the end of this month.
Foster's said in a statement that it believes its maximum exposure is limited to $340.9 million for primary tax and $204.8 million for penalties and interest.
The assessments relate to the utilisation of tax losses associated with the funding of the Elders Finance Group (EFG) in the 1980s and 1990s. The availability of tax losses associated with the funding of EFG is currently the subject of Federal Court proceedings initiated by Foster's.
Foster's said in a statement it expects to pay A$257 million in tax in respect of the assessments by Aug. 3. This amount is fully refundable in the event that the matter is resolved in favour of Foster's, it said.
"Foster's intends to object to the assessments. Foster's remains confident of the position it has adopted and intends to defend vigorously the deduction claims.
The company earned A$363 million in profit before items in the half year ended in December.
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