National Australia Bank Ltd (ASX:NAB) says it has resolved its dispute with the Australian Taxation Office (ATO), resulting in around $142 million being knocked off its tax bill.
NAB has been involved in a dispute with the ATO since 1997 over the treatment of a capital raising.
NAB today advises that it will obtain a refund of some amounts previously paid to the ATO in relation to the Exchangeable Capital Units assessments.
Under the agreement NAB's assessments between 1997 to 2007 are reduced by around $142 million in tax, subject to final interest and other adjustments.
NAB chief financial officer Mark Joiner says the resolution removes the need for potentially long and costly legal proceedings.
In the 2010 financial year NAB booked a net profit of $4.2 billion.
