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

 


Hirepool settles tax dispute ahead of IPO

Hirepool settles tax dispute ahead of IPO

By Pattrick Smellie

June 17 (BusinessDesk) - Hirepool is the latest company with trans-Tasman operations to settle a tax dispute with the Inland Revenue Department, forfeiting $58.6 million of tax losses generated by the use of mandatory convertible notes, one of two commonly used structures the IRD has successfully challenged in the New Zealand courts.

The settlement, on June 9, is recorded in the prospectus for the Hirepool float, which will seek to raise up to $262 million from investors next month, as existing Australian investor Next Capital and other shareholders seek both to sell down their shareholdings and raise fresh capital to repay debt.

The $58.6 million is the full value of tax credits claimed by Hirepool from the use of MCN's, which are a structure that sought to create the most tax-effective balance of debt and equity held by Australian-controlled companies with New Zealand operations.

MCN's and their close cousin, optional convertible notes, gained favour in the early 2000s, but have fallen foul of a string of tax rulings that would have stretched to the country's final court of appeal, the Supreme Court, had an appeal by Australian firm Alesco not been settled on the eve of hearings scheduled in February.

Alesco was a test case, which appears to have opened the floodgates on settlements with other taxpayers. Among other Australasian corporates caught up are Qantas, Transfield, Telstra Corp, Toll Holdings, and Ironbridge, the former owners of Mediaworks, which runs the TV3 and RadioLive networks.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news