March 27th, 2006

Troubled building products company, James Hardie, has received a massive tax bill for over $400 million which the company plans to dispute. The Australian company, which has been under fire in relation to compensation payouts to asbestos victims, has seen a slump in the value of its shares since news about the tax bill was revealed.

The bill, following an assessment by the tax office claims that the company owes the huge sum due to back taxes as well as penalties and interest. James Hardie has provided a breakdown of the tax bill received from the Australian Taxation Office, which has been given as $172 million in primary taxes, $43 million in penalties, and $197 million in general interest.

A spokesperson for the company has confirmed that the tax bill will be disputed, stating: "James Hardie strongly disputes the assessment and will pursue all avenues of objection and appeal to contest the ATO's position on this matter. Following legal and tax advice both at the time of the transaction and during ATO enquiries, the company believes its tax position will ultimately prevail."