The Commonwealth Bank (ASX: CBA) has warned investors it may need to pay NZ$285 million ($231 million) in back taxes to New Zealand, following last week’s Westpac case.
The company’s New Zealand subsidiary, ASB, said the court’s ruling could mean tax is owed on several of its own transactions between 2001 and 2004.
“Taking into consideration current provisions, the residual exposure would be equivalent to approximately six basis points of Tier 1 Capital for the group,” the company said in an ASX filing.
New Zealand’s Commission of Inland Revenue last week won a NZ High Court battle against Westpac, with the court finding the bank owed NZ$586 million in back taxes on nine transactions made between 1998 and 2002. Westpac was fined a total of NZ$918 million.
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