HT&E to settle 2018 ATO dispute for $71m
Media company Here, There & Everywhere (HT&E), ARN’s parent company, has settled a taxation dispute with the Australian Taxation Office (ATO) for the sum of $71 million.
According to a market announcement, HT&E “remains satisfied that its treatment of the branch matter was consistent with relevant taxation legislation, the Board views the settlement arrangement reached with the ATO as being in the best interests of shareholders”.
The ATO applied $195 million in penalties on HT&E over the way it accounted for the sale of some of its New Zealand assets back in August 2018. The bill accounted for $49 million in penalties, a $102 million tax bill and $43 million in interest.
At the time, back in 2018, HT&E said it disagreed with the rates of the penalties imposed and was prepared to go to litigation if necessary.
The difference between the $71 million settlement and the $50.7 million deposit paid of $20.3 million will be funded from HT&E’s existing cash deposits.
Following the announcement, HT&E shares rose 29.25% to $1.90.
Settlement with the ATO is intended to be formalised.
Last month, HT&E’s planned sale of its stake in Soprano was terminated.
In August, HT&E reported a 21% increase in group revenue to reach $109.9 million for its H1 2021 reports.
