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Resolution to NZ Structured Finance Litigation
Industry Resolution to NZ Structured Finance Litigation
Westpac Group confirmed today that it was one of four banks including BNZ, ANZ and ASB to reach a settlement with the NZ Commissioner of Inland Revenue (CIR).
Westpac’s agreement relates to nine structured finance transactions undertaken by Westpac in NZ between 1998 and 2002.
Under the settlement Westpac will pay the CIR 80% of the full amount of primary tax and interest.
As part of the settlement arrangements no penalties will be levied against Westpac.
Westpac New Zealand Chief Executive George Frazis said, "We entered these transactions relying upon expert advice and a ruling issued by the IRD in relation to a similar transaction, but we accept the court has ruled and that, on balance, it is best that we accept this industry settlement and move on.
"Importantly, this
has no impact on Westpac's service to our customers and the
growing momentum in our New Zealand
business."
Westpac Group fully provided for the value of primary tax and interest claimed by the CIR as part of its 2009 result, and as a result there will be a write back in 2010 of approximately NZD190M.
All other details of the settlement agreement remain confidential.
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