News Corp has come out and categorically denied allegations in the rival Fairfax presses this morning that it “has siphoned off $4.5 billion of cash and shares from his Australian media businesses in the past two years, virtually tax free”.
Read the Fairfax article here.
This afternoon News Corp issued a press statement via its Australian CEO Julian Clarke that said the article was based “on a fundamental misunderstanding of the nature of these transactions, US and Australian tax treaties and applicable Australian tax law”.
The full statement, under the headline “News Corp Australia rejects tax minimisation claims by Fairfax” was as follows:
“News Corp Australia today denied claims in the Fairfax press that it had “siphoned off $4.5 billion in cash and shares from its Australian operation, virtually tax-free.”
News Corp Australia CEO Julian Clarke said: “This claim is based on a fundamental misunderstanding of the nature of these transactions, US and Australian tax treaties and applicable Australian tax law.”
Over the last five years, News Corp Australia has paid $417 million in corporate tax and withholding tax on accounting profits of $815.9 million. News Corp Australia has also paid $900 million in goods and services, fringe benefits and payroll taxes over the last five years.
“We expect these matters to be covered in more detail at the Senate Committee tax hearing in Sydney tomorrow” added Mr Clarke.”