James Hardie To Appeal Federal Court Tax Decision

James Hardie Industries SE (JHX.AU) said Monday that it will appeal a recent court decision that supported a tax ruling against the company over its 1998 corporate restructure.

The building materials company on Sept. 1 lost an appeal in the Federal Court against the ruling that requires it to pay around US$168.8 million in back taxes.

As expected by analysts, James Hardie has appealed against the decision to the Full Federal Court

Regardless of the appeal, James Hardie said it is likely to record a charge, that would have been around US$330.4 million if it had been included in last financial year's books.

"The company advises that it will remain in compliance with its debt covenants should a charge be taken," it said.

James Hardie, however, said that apart from interest payments on the unpaid balance of the amended assessment, no cash will be required to be paid to the Australian Taxation Office until the matter has ultimately been resolved.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; [e-mail]