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Singtel flags $216 million exposure in Australia tax case defeat -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A man gazes out from the Singtel sign at their Singapore head office on February 12, 2015. REUTERS/Edgar su/File Photos GLOBAL WEEK AHEAD/File Foto

SINGAPORE, (Reuters) – Singapore Telecommunications Ltd estimates it has A$304M ($216 million in tax exposure and interest) after an Australian court rejected its appeal against a tax assessment made by the taxation office.

It is about its 2001 acquisition of Singtel Optus Pty Limited.

Singtel’s Australian subsidiary Singapore Telecom Australia Investments, (STAI), received revised assessments from the Australian Taxation Office. These included primary tax at A$268 Million, interest at A$58 Million, and penalties at A$67M in 2016, 2017 and 2018.

Singtel claimed in Sunday’s statement that the Federal Court of Australia had given an unfavorable judgement to its appeal against these assessments.

According to Singtel, these exposures are a part of a withholding tax refund.

The Singtel Group will review the details and explore all options to determine the next steps. Singtel made the following statement: “If the above-mentioned tax exposures are considered probable, provisions will be made in accounts.”

($1 = 1.4051 Australian dollars)

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