Don Groves is a Deadline contributor based in Sydney
News Corp’s Australian arm News Ltd has successfully appealed a decision by the Commissioner of Taxation to deny it $A2 billion in tax deductions relating to foreign currency transactions in 1989. Federal Court Justice Nye Perram found that 30 companies associated with News Ltd were owed the deductions from foreign-exchange losses in a debt transfer from an American arm of the company that were claimed between 2000-2002. He did not issue an order for the payment pending further investigations of when the currency conversions took place. The Australian newspaper speculated he final pay-out could amount to hundreds of millions of dollars; the total losses claimed were $629.6 million in 2001 and $1.42 billion in 2002. The paper said the Tax Commissioner will almost certainly appeal the decision to the Federal Court of Appeal and ultimately to the High Court.