Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


APN News heading to court over $48M tax dispute with IRD

APN News heading to court over $48M tax dispute with IRD

Feb. 25 (BusinessDesk) – APN News & Media is heading to the High Court over a $48 million tax claim after failing to convince the Inland Revenue Department that its deductions for interest claimed on certain financing transactions was correct.

The publisher of the NZ Herald newspaper had hoped to resolve the dispute via the IRD’s adjudication unit, whose work is aimed at resolving claims at an early stage to reduce the number of litigated cases.

But the unit advised the company on Friday that it agrees with IRD’s position, meaning the tax department will shortly issue APN with notices of assessment denying the deductions.

“In response to this step the company will commence litigation in the High Court to defend its position in relation to this matter,” APN said in a statement. “The company is satisfied that its treatment of the financing transactions is consistent with all relevant legislation and that no tax will become payable.”

IRD is seeking the $48 million for the period up to Dec. 31 and penalties amounting to 50 percent of the tax in dispute as well as interest. That pushes the total above $72 million though APN said it has tax losses it can use as an offset amounting to $32 million.

Extra tax is the last thing APN needs right now, having posted a full-year net loss of A$455.8 million last week on increased write-downs on the value of goodwill and its newspaper mastheads.

The company’s managing director and most of its board resigned this month after major shareholders opposed plans to raise new capital.

The shares last traded at 27.5 Australian cents on the ASX and have shed two thirds of their value in the past 12 months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news