A taxing time: a review of tax disputes in the ASX 200 – 2013/4

This comprehensive report reviews all disclosed tax disputes on foot with ASX 200 companies, highlighting the $711 million in earnings at risk.

Unlike other litigation events, investors are generally aware of the amount in dispute but evaluating the risks is very difficult:

– Disputes are frequently complex and can take many years to resolve

– The ATO’s focus on stapled securities’ tax practices continues to cost investors

– Disputes currently on foot run to at least $711.5 million (excluding SingTel), of this $272 million relates to disputes at stapled entities

– Anecdotal evidence from recent ATO settlements suggest it is willing to settle disputes for much less than amounts originally claimed

– Entities rarely disclose details of costs incurred when settling disputes

This comprehensive report helps investors appraise the risk of tax disputes currently on foot and is available for sale by contacting us on 03 9602 4548.