Release Time IMMEDIATE
Date 18 October 2000
Number 97/00
BHP CONSIDERS FEDERAL COURT DECISION ON TAX CASE
The Broken Hill Proprietary Company Limited (BHP) said it would consider
seeking leave to appeal to the High Court of Australia following today's ruling
by the Full Bench of the Federal Court in favour of the Australian Taxation
Office. BHP has 28 days to lodge a special leave application.
The ruling follows the Australian Taxation Office appeal to the Full Bench of
the Federal Court, after the Federal Court ruled in BHP's favour on 23 November
1999.
The dispute concerned the deductibility of financing costs paid to General
Electric Company in connection with BHP's acquisition of the Utah Group in the
early 1980s. The Australian Taxation Office had sought to recover from BHP a
disputed tax amount of about $A88 million plus $A125 million in interest
charges.
The Company disclosed a total contingent liability of $A211 million, as at 30
June 2000, in the 2000 Annual Report. Of the total amount $A79 million had
previously been paid and was accounted for as a non-current asset in the
financial statements, pending finalisation of the litigation.
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