Arrium Limited
(ASX:ARI) is gearing up to battle the Australian Tax Office (ATO) in relation to a $26 million charge stemming from a deal entered into eight years ago.
The mining and materials group has advised it will challenge the ATO’s position that Arrium should not have claimed income tax deductions on lease rental payments made under the sale and leaseback transaction in 2004.
Arrium, formerly known as OneSteel, says it intends to vigorously defend its position including pursuing all avenues of objection as appropriate.
Shares in Arrium rose 2.19 per cent to finish the week at $0.70 after the announcement was made on Friday just days after its Asian suitor ditched a $1 billion takeover bid for the company.
Arrium booked a net profit of $63.6 million in the 2012 financial year.
