AFX News Limited
Australia's James Hardie continues talks on tax break for asbestos claims
12.15.2005, 11:58 PM
SYDNEY (AFX) - James Hardie Industries NV said it is continuing discussions with federal treasury after the Australian Tax Office (ATO) ruled it is not entitled to tax deductions for its proposed asbestos compensation plan.
The building products group said it had received a ruling from the ATO that contributions will not be tax deductible under current federal tax laws, casting more uncertainty about it finalizing its claim obligations.
James Hardie shares fell as low as 7.79 aud following the morning announcement but recovered in afternoon trading.
At 3:30 pm, Sydney, James Hardie was up 0.04 aud at 8.55 while the S&P/ASX 200 was up 13.5 points at 4,641.4.
The company signed an agreement with the State Government of New South Wales Government earlier this month to provide up to 4.5 bln aud to a fund to compensate victims of asbestos-related diseases over the next 40 years.
But the agreement was conditional on the ATO allowing the compensation payments and fund to be tax deductible.
James Hardie chief executive Louis Gries said the company will pursue all options to meet the tax conditions.
'James Hardie remains committed to a long term compensation arrangement for Australian personal injury claimants,' Gries said.
Source: http://www.forbes.com/markets/feeds/afx/2005/12/15/afx2396628.html |