
If you believe that technology could be bridging the generation gap, think again. According to Deloitte’s first State of the Media report it’s as stark as ever.
read more
Stan Beer
Thursday, 29 September 2005 10:00
Electronic transactions provider Keycorp Limited (ASX: KYC) is in dispute with the ATO over the transferrence of tax losses in relation to the sale of one of its businesses to Telstra. An ATO ruling could cost Keycorp up to $4.4 million.
During the course of due diligence into the Transaction Network Solutions (TNS) business prior to the sale to Telstra, uncertainties were identified in relation to the tax law applicable to tax loss transfers completed between Keycorp group companies in 2001 and 2002. Keycorp requested a private ruling from the ATO.
The ATO has notified Keycorp that it does not agree with its position, so under advice fom its accountant Ernst & Young, Keycorp will appeal the ATO ruling, claiming that the ATO has not fully considered the key issues contained in its request for private ruling.
Under current tax legislation, if a business with revenues of more than $100 million changes ownership, tax losses can not be tranferred. Under previous legislation, businesses that could demonstrate that they were carrying on essentially the same business under different owners were exempt.
If Keycorp fails in its bid to have the ATO reconsider its position, the company could incur an additional income tax liability of up to $4.4 million.
Think again. Most businesses only have PART of a DR plan - and this spells business disaster in the event of an IT disaster.
Download The Seven Sins of Disaster Recovery White Paper now and find out how you can prevent this happening to you.