HT&E Limited, the owner of radio network ARN, has settled a a dispute with the ATO for $71 million.
The company says the binding heads of agreement was made in consultation with HT&E’s taxation advisers and is considered a fair and reasonable outcome.
"Whilst HT&E remains satisfied that its treatment of the branch matter was consistent with relevant taxation legislation, the Board views the settlement arrangement reached with the ATO as being in the best interests of shareholders," the company said in a notice to the ASX.
The dispute, over the tax treatment of a New Zealand branch, has been running since 2018.
The matter involved $102.5 million of tax adjustments, $49 million of penalties and interest of $43 million, totalling $195 million.
The difference between the $71 million settlement and a $50.7 million deposit paid, $20.3 million, will be funded from HT&E’s existing cash deposits.
Revenue at HT&E jumped 21% to $109.9 million in the half year to June. Net profit after tax was $10.2 million, a massive $69.4 million increase from the same half last year when the company posted a $59.3 million loss.
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