The appeal of Singapore Telecommunications Z74 ’ (Singtel) wholly-owned Australian subsidiary, Singapore Telecom Australia Investments Pty Limited (STAI), has been dismissed by the federal court.
The appeal was related to the acquisition financing of Singtel Optus in 2001. STAI, in 2016 and 2017, had received amended assessments from the Australian Taxation Office that comprised primary tax of A$268 million ($236.7 million), interest of A$58 million and penalties of A$67 million.
In relation to the amended assessments, STAI’s holding company, Singtel Australia Investment, would be entitled to a refund of withholding tax that was estimated to be around A$89 million. STAI had paid a minimum amount of 50% of the assessed primary tax in November 2016 in accordance with the administrative practice of the Australian Taxation Office.
In its March 8 statement, STAI says it will “review the details of the judgment, explore available options and determine [its] next steps”.
The court did not decide on the issue of penalties, as it was not the subject of the proceedings.
“STAI will also review and consider its position on applying for relief as to the penalties,” adds the statement.
See also: Optus and NCS bring better 1HFY2025 for Singtel; raises ebit guidance and interim dividend
The net tax exposure and related interest and penalties have been fully provided in Singtel’s financial statements.
As at 1.19pm, shares in Singtel are trading 1 cent higher or 0.42% up at $2.38.
