(4 November 2009 – New Zealand) Westpac has reviewed a decision handed down by the New Zealand high court in relation to structured finance transactions that found in favour of the High Commissioner of the Inland Revenue and has decided to appeal.The decision, released last month, found in favour of the NZ Commissioner of Inland Revenue on four representative transactions.
George Frazis, chief executive officer, Westpac NZ, said that Westpac has now taken the time to review the detail of the decision and considers an appeal to be justified.
In the bank’s view there are sound arguments that warrant an appeal of the High Court’s decision. Westpac considers those arguments are of sufficient merit to justify consideration by the NZ Court of Appeal, Mr Franzis said.
Westpac had hoped that a 2001 ruling by the NZ Inland Revenue commissioner would convince the High Court that nine structured finance transactions between 1998 and 2002 satisfied tax laws.
The High Court decision supported a July ruling by the same court on similar structured finance transactions undertaken by National Australia Bank, leading to NAB’s announcement in August that it would raise a provision for the full amount of $NZ661 million, including associated costs.
Westpac has stated that the appeal would not likely be until the fourth quarter of 2010.