By Gareth Vaughan
ASB is involved in a tax dispute with the Inland Revenue Department (IRD), which it says has a potential liability of at least NZ$153 million.
The bank's latest general disclosure statement says the dispute relates to "a liquidity funding transaction" that's currently being reviewed by IRD and is subject to the formal tax dispute resolution process.
"The tax position has a potential liability of NZ$153 million plus interest and penalties," ASB says. "The Banking Group has made what it considers to be adequate provision for this matter based on its assessment of the merits of the arguments and independent advice received."
"In previous periods the Banking Group had other transactions that were also subject to the formal tax dispute resolution process. The treatment of these other transactions has now been resolved by agreement between the Banking Group and the Inland Revenue Department. As at June 30, 2012 the Banking Group had tax positions with a potential liability of NZ$176 million plus interest and penalties."
In the bank's previous general disclosure statement, the dispute was said to involve "certain equity swap transactions" as well as a "liquidity funding transaction."
An ASB spokesman said that, due to the commercial sensitivity of the matter, the bank couldn't disclose any further information. An IRD spokesperson declined to comment.
This article was first published in our email for paid subscribers. See here for more details and to subscribe.
1 Comments
An ASB spokesman said that, due to the commercial sensitivity of the matter, the bank couldn't disclose any further information.
And the sitting duck unsecured depositors should accept this nonsense and not take flight to seek out a bank with a transparent approach to it's dealings where other people's money is always at risk - when all said and done the RBNZ authors of OBR claim in respect of unsecured creditors:
"Each has freely invested in a private institution and has enjoyed a return on that investment whilst accepting the risks associated with the investment."
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.