MLC settles legacy tax dispute

Tuesday, 16 March 2010

MLC Lifetime Company Limited has reached an agreement to settle a dispute with the ATO which was disclosed in NAB Group’s & National Wealth Management Holdings Limited’s 2009 full year financial results.

The dispute relates to the tax treatment of a reinsurance contract entered into by MLC Lifetime in the 1998 tax year and amended in the 2000 tax year.

In 2007, the ATO issued an amended assessment to MLC Lifetime claiming approximately $54 million of primary tax together with interest. The total amount in dispute was $84 million (pre tax).

Under a Deed of Settlement, MLC Lifetime will, on a without admission of liability basis, agree to pay a pre tax amount of $38.5 million to resolve the dispute in full.

For further information:

Media
Stacey Mitchell
M: +61 (0) 400 305 446