Lendlease says it will dispute $112m tax bill from the ATO related to its retirement living business

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John Wylie’s Tanarra Capital is pushing for a seat on the Lendlease board, as the country’s largest property group faces the prospect of a damaging profit downgrade after tax officials handed it a $112 million bill.

Already a subscriber?that it had been given the tax bill relating to the sale of its retirement business, which came after allegations it had been “double-dipping” on tax benefits over the 2017 deal.The tax bill could rise, as the assessment relates only to the 25 per cent sale of the retirement living trust for about $450 million to a Dutch pension fund. Lendlease sold another 50 per cent of units to Aware Super in 2021 and 2022.

The company, which operates a sprawling development business in Australia, Europe and Asia, will face unhappy investors on May 27, when it holds a long-planned strategy day.Mr Wylie’s Tanarra Capital is the most outspoken critic of a strategy put in place by Lendlease chief executive Tony Lombardo, and has called for the company to divest its international operations and reform its “arrogant” culture.

Other shareholders agitating for change include Allan Gray and HMC Capital. Mr Ullmer is expected to outline his plans to retire after 13 years on the Lendlease board as early as the strategy day this month. Lendlease declined to comment. Mr Brayshaw, Barrenjoey’s head of real estate research, said on Monday after the company confirmed the potential $112 million tax bill: “It’s not ideal, but the market’s focus is predominantly on the strategy update and what this may entail.”Former Lendlease external tax adviser Anthony Watson has spent more than a decade warning the company allegedly “double-dipped”. On Monday, he said he was confident the company was still under-reporting its potential total tax liability.

Lendlease shares last traded at $6.06, down more than 26 per cent in 12 months and almost 60 per cent over five years.

 

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Lendlease hit with $112m tax bill over retirement businessThe property group has been hit with an initial $112 million bill from the Tax Office, in a dispute that could ultimately cost it more than $300 million.
Fonte: FinancialReview - 🏆 2. / 90 Consulte Mais informação »