Tax settlement could reap IRD $300m – but law is no clearer

The settlement of a major tax case on the eve of Supreme Court hearings leaves the law no more clear in this area.

Listed Australian firm Alesco announced this afternoon it has settled its dispute and abandoned its appeal against a Court of Appeal ruling that found in favour of Inland Revenue last year.

The case revolved around use of optional convertible notes (OCNs) over the period 2003-08 and, although the amount in dispute was $8.6 million, Alesco was seen as a test case for other firms which had used similar methods to finance expansion in New Zealand.

 

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