Australian Tax Office demands 32 million euros from Bridgestone

The Australian Tax Office is attempting to collect up to $52 million Australian dollars (32 million euros) in tax and interest from Bridgestone Australia over an issue dating back 14 years. Directors said the ATO had issued an amended assessment for $27.7 million during the year, comprising the primary tax claimed and penalties.

“Interest may be accruing on these amounts pending the outcome of this matter and could potentially lift this to an estimated maximum amount of $52 million,” the Adelaide-based tyre maker’s chairman and chief executive, Fumio Okuma, said. “Our case is a test case in many ways and it has been looked at very seriously by the ATO,” Bridgestone finance director Andrew Moffatt added.

He believes there are many similar cases set to go to court and that the ATO is being particularly careful as it has already lost two similar cases.