No. 1 Story

Telstra adds one million mobile services, but Sensis plummets

Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.

read more

Keycorp in $4.4m tax loss stoush with ATO

IT Industry - Listed Tech

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.

Loading comments ...

- sponsored feature -

The Death of Traditional BI: What’s Next?

How to Make Business Discovery Work for Your Business IP PABX BUYING GUIDE

Business Discovery takes its cues from consumer apps. Like Google, it encourages us- ers to hunt for and explore data without worrying about or even noticing the underly- ing technology. Their entire experience is working within an intuitive interface to get real-time, self-service results with only minimal training. ...more