Foster’s Group Limited (Foster’s) today received assessments from the Australian Commissioner of Taxation (Commissioner) for primary tax of $49.5 million and interest of $17.1 million. Foster’s expects to receive additional assessments for penalties of between $12.4 million and $24.7 million.

The assessments relate to a capital loss in the 2004 financial year.

In accordance with the Commissioner’s published guidelines, Foster’s expects to pay $33.3 million to the Commissioner in respect of the assessments for primary tax and interest by 21 December 2010. This amount is fully refundable, with interest, in the event that the matter is resolved in Foster’s favour. Although additional assessments are expected in respect of penalties, Foster’s does not anticipate any further payment being required pending resolution of the matter.

Foster’s intends to recognise the amount paid to the Commissioner as a receivable until the matter is resolved.

Foster’s is confident of the position it has adopted in claiming the capital loss and intends to defend it’s position vigorously.

The assessments received today are unrelated to disputed assessments associated with the funding of the Elders Finance Group. The Commissioner’s appeal in that matter was heard by the Full Federal Court of Australia in August 2010 with judgement reserved.

Further information:

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