Q. What do James Hardie (ASX:JHX) and Paul Hogan have in common?
A. Neither of them will be sending Christmas cards to the ATO this year.
James Hardie has regularly reported on the ongoing discussions with the ATO about its dispute regarding an amended 1999 tax assessment, so investors were relatively unfazed by the news that the Federal Court had delivered a negative verdict on the case.
The charge relates to RCI Pty Ltd (a wholly owned subsidiary of James Hardie) and an amended 1999 tax assessment. The amended assessment related to the net capital gain that arose from an internal corporate restructure. RCI received the amended assessment in 2006, and after the ATO disallowed RCI’s objection in 2007, RCI filed an appeal with the Federal Court of Australia.