Mixed fortunes for Gunns this weekFriday 13 Jul 2012 Do you want the good news or the bad? On the positive side of the ledger, embattled Australian timber company Gunns Limited is close to finalising a sale of its Portland woodchip loading facility in Victoria for about AU$60 million according to a report in the The Mercury. It is understood the buyer is Australian Bluegum Plantations a subsidiary of US-based firm Global Forest Partners. It is expected the company will make an announcement to the stock exchange tomorrow.In other news this week the company was reported to have been hit with a AU$65 million tax bill. Gunns told the Australian Securities Exchange that the Australian Taxation Office had issued it with two amended income tax assessments. The assessments relate to an AU$100 million transaction that involved the sale and leaseback of woodchipping and processing equipment. The Tax Office is demanding more than AU$42.5 million for the "denial of rollover relief" and AU$22.4 million for the "denial of rental deductions". In its statement to the stock exchange, Gunns declared that it would object to the Tax Office's demands. The company considers that these assessments are alternatives and cannot both be correct. The company believes that its position in relation to the transaction is correct and that its position is supported by both the existing case law and the ATO’s published ruling on sale and leaseback transactions. Gunns intends to vigorously defend the assessments. In the meantime arrangements will be made for part payment of the assessments whilst the matter remains in dispute. For the full announcement to the ASX from Gunns, click here |
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