Singtel's Australian unit receives unfavourable judgment in court dispute with Australian Taxation Office

SINGTEL announced in a bourse filing on Friday (Dec 17) that its Australian subsidiary Singapore Telecom Australia Investments (STAI) has received an unfavourable judgment from the Federal Court of Australia in its dispute with the Australian Taxation Office (ATO)

The court case is in relation to the acquisition financing of Singtel Optus in 2001.

In 2016 and 2017, STAI received amended assessments from the ATO comprising a primary tax of A$268 million (S$261.8 million), interest of A$58 million and penalties of A$67 million.

STAI's holding company, Singtel Australia Investment, would be entitled to a corresponding refund of withholding tax estimated at A$89 million.

After seeking to settle the matter with the ATO in good faith and failing to reach an agreement, STAI had decided to seek clarity from the court process.

Singtel said that the group is committed to complying with tax obligations in markets where it has operations. STAI, as the head tax entity of the Optus group, continues to be a significant taxpayer in Australia, said Singtel.

"The group will consider the details of today's judgment, explore available options and determine next steps. It will also ensure material updates are provided to investors on a timely basis," said Singtel.

Shares of Singtel ended Friday at S$2.37, down S$0.06 or 2.5 per cent.