Fortescue Metals Group Limited
(ASX:FMG) has had its challenge over the legality of the Federal Government’s minerals resource rent tax dismissed by the High Court of Australia.
In its judgement, the High Court says it’s unanimously dismissed claims that some provisions of the mining tax were not valid laws of the Commonwealth.
The decision follows a challenge headed by Fortescue Metals Group, even though the company hasn't paid any of the tax as yet.
The MRRT, which came into effect in July 2012, imposes a 22.5 per cent tax on profits over $75 million derived from the extraction of iron ore, coal and coal-seam gas.
Fortescue Metals generated a net profit of $460.3 million in the first half of the 2013 financial year.
