Australian taxman seeks $100m from HT&E

SYDNEY: The Australian Tax Office wants more than $A100 million from ASXlisted HT&E, formerly APN News & Media, over the licensing of former New Zealand mastheads it bundled into NZME and subsequently delisted.

The Australian tax authority released amended assessments for the 2009 through 2012 calendar years, totalling tax adjust ments of $A72 million plus $A32 million of interest, HT&E said in a statement. That does not include penalties, which the ATO has not decided whether to apply or not.

Sydneybased HT&E closed its New Zealand branch after carving out NZME as a standalone listed business but has previously acknowledged ATO planned to challenge the Australian media group’s treatment of the royalty income. The ASXlisted shares sank 8.9% to $A1.64.

‘‘HT&E remains satisfied that its treatment of this matter is consistent with relevant legislation,’’ it said in a statement. ‘‘HT&E intends to lodge an objection with the ATO and if necessary contest the amended assessments through litigation proceedings.’’

New Zealand’s Inland Revenue Department investigated the arrangements of the mastheads when HT&E, then APN and controlled by Irish billionaire Tony O’Reilly, bought The New Zealand Herald publisher Wilson & Horton, where the intangible assets were sold to JPMorgan for $515 million and leased back to the wider group for seven years at an annual $94.5 million. APN claimed a GST deduction on the whole amount, which it ended up keeping after IRD dropped its challenge in 2009.