Drilling contractor Songa Offshore has settled with the Australian taxation office by paying A$1.2million.
The Australian Taxation Office (ATO) raised claims against Songa Offshore for the 2009 year in relation to the global restructure implemented in May that year, when the company in Australia changed from an owner operated structure to a bareboat structure.
Songa said the potential liability for the ATO’s primary withholding tax avoidance case for the 2009 – 2011 years was estimated at A$88.8m, inclusive of interest and penalties.
The ATO also raised an alternative income tax avoidance case, for which the potential liability for the 2009-2011 years was estimated at A$24.2m, inclusive of penalties and interest.
Songa said the dispute, including all matters with the ATO, was settled last week with Songa agreeing to make the cash payment of A$1.2m (approximately $0.8 million).
The company said a corresponding provision was made in the second quarter 2015 interim financial statement.