OZschwitz: James Hardie looks at avenues to sue over $153m tax bill

AMES HARDIE is investigating whether it has grounds to sue for damages over a tax audit which led to a $153 million payment to the Australian Taxation Office in December.

Federal Court documents show that the company, with the agreement of the Tax Office, is keeping alive a once-defunct subsidiary because of its potential right to take legal action.

Until the December payment, the wholly owned subsidiary, James Hardie Australia Finance Pty Ltd, was under the control of a liquidator appointed by the Tax Office.

Three days after the payment was announced, James Hardie applied to the court to terminate the winding up of JHAF.

In its application filed in court, James Hardie said: "Importantly, [it] … intends if the winding up of JHAF is terminated to investigate JHAF's potential causes of action arising from the matters which the Deputy Commissioner of Taxation claimed gave rise to the tax liability."

Justice Kevin Lindgren granted the application on December 22 and nine days later James Hardie injected $100,000 into JHAF in return for new shares. The Tax Office told Justice Lindgren its debt had been satisfied by the $153 million payment and it therefore did not object to JHAF returning to James Hardie's control.

LNK

OZschwitz: James Hardie looks at avenues to sue over $153m tax bill

OZschwitz: James Hardie looks at avenues to sue over $153m tax bill

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