Quick Telecast
Expect News First

Singtel flags $295m of exposure, interest and penalties from Australian tax case loss

0 51


SINGAPORE (THE BUSINESS TIMES) – Singtel on Sunday (Dec 19) said it estimated a net tax exposure and related interest and penalties amounting to A$304 million (S$295.9 million), following the Federal Court of Australia’s dismissal of its appeal of a tax assessment by the Australian Taxation Office (ATO).

The dispute relates to the acquisition financing of Singtel Optus, then known as Cable and Wireless Optus, in 2001. In 2016 the ATO objected to how the acquisition was paid through cross-border financing arrangements between Singtel’s subsidiaries, and estimated a primary tax payable of A$268 million from an increased taxable income of about A$895 million.

Singtel lodged its appeal against these assessments, and announced it received unfavourable judgment from the Federal Court of Australia last Friday.

In its Sunday filing, Singtel said the total amount includes a refund of withholding tax estimated at A$89 million for the holding company of Singtel’s Australian subsidiary, Singtel Telecom Australia Investments (STAI).

Amended assessments from the ATO comprise a primary tax of A$268 million, interest of A$58 million and penalties of A$67 million.

Singtel’s exposures were “fully disclosed” as contingent liabilities in its audited financial statements in prior periods, it added.

Underscoring its commitment to complying with tax obligations in markets where it has operations, the group said STAI continues to be a “significant taxpayer” in Australia.

“The Singtel group will consider the details of the (Australian government’s) judgment, explore available options and determine next steps. If the above tax exposures are assessed to be probable, provisions shall be made in the accounts,” it stated.

Experts have told Bloomberg that the Singtel ruling suggests that intra-company pricing of financing for major investments will continue to be met with closer regulatory scrutiny.

Bloomberg in its Saturday article also reported one source saying transfer pricing – particularly for related-party financing – was the “single most important focus area for the ATO in recent times”.

Shares of Singtel opened on Monday morning at $2.34 each, down by 1.3 per cent.


SINGAPORE (THE BUSINESS TIMES) – Singtel on Sunday (Dec 19) said it estimated a net tax exposure and related interest and penalties amounting to A$304 million (S$295.9 million), following the Federal Court of Australia’s dismissal of its appeal of a tax assessment by the Australian Taxation Office (ATO).

The dispute relates to the acquisition financing of Singtel Optus, then known as Cable and Wireless Optus, in 2001. In 2016 the ATO objected to how the acquisition was paid through cross-border financing arrangements between Singtel’s subsidiaries, and estimated a primary tax payable of A$268 million from an increased taxable income of about A$895 million.

Singtel lodged its appeal against these assessments, and announced it received unfavourable judgment from the Federal Court of Australia last Friday.

In its Sunday filing, Singtel said the total amount includes a refund of withholding tax estimated at A$89 million for the holding company of Singtel’s Australian subsidiary, Singtel Telecom Australia Investments (STAI).

Amended assessments from the ATO comprise a primary tax of A$268 million, interest of A$58 million and penalties of A$67 million.

Singtel’s exposures were “fully disclosed” as contingent liabilities in its audited financial statements in prior periods, it added.

Underscoring its commitment to complying with tax obligations in markets where it has operations, the group said STAI continues to be a “significant taxpayer” in Australia.

“The Singtel group will consider the details of the (Australian government’s) judgment, explore available options and determine next steps. If the above tax exposures are assessed to be probable, provisions shall be made in the accounts,” it stated.

Experts have told Bloomberg that the Singtel ruling suggests that intra-company pricing of financing for major investments will continue to be met with closer regulatory scrutiny.

Bloomberg in its Saturday article also reported one source saying transfer pricing – particularly for related-party financing – was the “single most important focus area for the ATO in recent times”.

Shares of Singtel opened on Monday morning at $2.34 each, down by 1.3 per cent.

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Quick Telecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment
buy kamagra buy kamagra online
Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

We have detected that you are using extensions to block ads. Please support us by disabling these ads blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock