Fletcher Building Limited announced today that the New Zealand Inland Revenue Department had concluded its audit review concerning the treatment of certain memorandum tax accounts maintained by the company with respect to its foreign sourced earnings. A tax benefit of $70 million was reported in the 30 June 2006 financial statements, but was fully provided against pending the outcome of this audit review.
The Inland Revenue Department has advised that no further action will be taken in respect of this matter, and as a consequence the tax benefit will now be fully recognised, so increasing net earnings for the 30 June 2007 year by $70 million. At this stage it is anticipated that tax benefits of this nature will be non-recurring.
For further information contact:
Jonathan Ling
Chief Executive Officer
Ph: 649 525 9169
Mob: 64 21 777 703
Bill Roest
Chief Financial Officer
Ph: 649 525 9165
Mob: 64 21 990 779