Singtel to appeal court case relating to acquisition financing of Optus

MAINBOARD-LISTED telco Singtel said in a bourse filing on Tuesday (Apr 19) that its Australian subsidiary, Singapore Telecom Australia Investments (STAI) has filed an appeal to the Full Federal Court of Australia regarding an unfavourable judgement it had received earlier.

The judgement relates to Singtel’s earlier failed appeal attempt against a tax assessment related to the acquisition financing of its Australian subsidiary, Singtel Optus, in 2001.

In a business update on Feb 15, 2022, the company said that it would defer the payment of primary tax, interest and penalties until the due legal process is completed.

In 2016 and 2017, STAI received amended assessments from the Australian Taxation Office amounting to A$393 million in primary tax, interest and penalties. While the final tax determination has yet to be set, Singtel has made provisions totalling S$316 million.

Singtel shares closed flat at S$2.58 on Tuesday before the announcement was made.