Investment bank Macquarie Bank could lose around $250 million in tax cuts following an investigation from the Australian Tax Office.
According to Fairfax Media the ATO is looking into Macquarie’s heavy use of offshore banking units, in particular ‘asymmetric swaps’ that transfer revenue raised in Australia to offshore banking units.
In the 2010 financial year Macquarie claimed an offshore banking units adjustment of around $257 million, compared to Australia’s major banks who claimed between $16 million and $56 million.
Fairfax Media says government policy is currently under review and a Treasury discussion paper due in July or August, 2011.
Macquarie Group Ltd (ASX:MQG) posted a net profit of $411 million in the six months to 30 September 2010.
