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.
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.