Singapore Telecommunications (Singtel) may have to pay the Australian Tax Office (ATO) around A$304 million. Its Australian unit received "an unfavourable judgment" from the Federal Court of Australia in respect of its action against the Commissioner of Taxation, the telco says.
The court case relates to the acquisition financing of Singtel Optus Pty Limited in 2001. In what was then the largest acquisition by a Singapore company, Singtel paid A$17 billion for Optus, Australia's second largest telco after incumbent Telstra.
In 2016 and 2017, Singtel’s Australian unit, Singapore Telecom Australia Investments (STAI), received amended assessments from the ATO, comprising primary tax of A$268 million, interest of A$58 million and penalties of A$67 million, for a total of A$393 million.