Cape Lambert Resources has agreed to pay the Australian Taxation Office $33 million as a provisional settlement for a dispute over $96 million in back taxes and penalties.
The company notified investors in May that it had received an amended ATO assessment which ordered it to pay $66.9 million in unpaid taxes and $28.8 million in penalties.
Today, Cape Lambert said it would pay $33.3 million in instalments to the ATO, or half of the primary tax and shortfall interest charge.
The ATO confirmed no further amounts will need to be paid until the final determination of the dispute, which may take up to three years, and if the dispute is resolved in Cape Lambert’s favour, any amount paid will be repayable with interest.
Chairman Tony Sage said Cape Lambert was pleased to have reached an agreement to repay a portion of the funds in association with ATO guidelines.
“The company remains confident that its objections should be determined favourably,” Mr Sage said in a statement.
“In the interim, the payment arrangement will allow the company to focus on its business objectives with a minimum of distractions, with its immediate objective being to monetise the Marampa project in the first quarter of 2013.”
Mr Sage said following the payment to the ATO, Cape Lambert will have cash reserves of more than $76 million.
At close of trade today, Cape Lambert shares were steady at 23.5 cents.
