British American Tobacco (New Zealand) Ltd said the New Zealand Inland Revenue is reviewing a financing transaction undertaken by the group.
The company said in annual accounts filed to the Companies Office that IRD's review was not yet complete.
The IR
British American Tobacco (New Zealand) Ltd said the New Zealand Inland Revenue is reviewing a financing transaction undertaken by the group.
The company said in annual accounts filed to the Companies Office that IRD's review was not yet complete.
The IRD had indicated to the group that it was preparing an issues paper and would make that paper available to the group shortly for its comment.
In light of this, and because of recent of a conservative shift in tax jurisprudence in New Zealand, the directors decided to make a provision of the tax which may be imposed by IRD in respect of the transaction. Businesswire reported that the provision was for $40 million.
BAT NZ reported a profit of $53.2m in the year to December 31, down from $106.1m in the previous year.
Major banks in New Zealand settled taxation disputes over structure finance transactions with the IRD last year.
