Westpac facing kiwi tax bill
(10 August 2004 – New Zealand) Westpac has announced it could face a US$417 million (A$582 million) tax bill following the New Zealand Inland Revenue Department’s review into three structured transactions carried out in 1999.
The bank said it had received 12 Notices of Proposed Adjustment ("NOPAs") from the NZIRD. NOPAs are instruments through which the NZIRD advises taxpayers that it is considering amending its tax assessment from that in the tax return.
Westpac said it was confident the tax treatment it applied in all cases was correct, and that the bank sought a binding ruling on an initial transaction in 1999 which the NZIRD confirmed in 2001.
The bank said it had applied these principles to all its subsequent transactions.
NZIRD is currently carrying out an industry wide investigation into structured finance transactions. Westpac said it had disclosed this in half yearly accounts, General Disclosure Statements and during market briefings.
Westpac said it was confident the tax treatment it applied in all cases was correct, and that the bank sought a binding ruling on an initial transaction in 1999 which the NZIRD confirmed in 2001.
The bank said it had applied these principles to all its subsequent transactions.
NZIRD is currently carrying out an industry wide investigation into structured finance transactions. Westpac said it had disclosed this in half yearly accounts, General Disclosure Statements and during market briefings.
Subscribe