Vector wins again in tax dispute over $53m payment by Transpower
Vector said the Court of Appeal confirmed a High Court ruling that the payment wasn't income for tax purposes.
Vector [NZX: VCT] has won for a second time against the Inland Revenue Department over its tax treatment for a $53 million payment made by grid operator Transpower.
The Auckland-based electricity and gas distribution company said the Court of Appeal confirmed a High Court ruling that the payment wasn't income for tax purposes.
"Vector took a prudent approach and, pending the outcome of the dispute, returned the proceeds as taxable, spread over a six year period from 2011," Vector said in a statement. "Subject to any further appeal process by the commissioner, Vector will be entitled to a tax credit of $12.5 million plus use of money interest in relation to 2011 to 2015 years."
The payment made by Transpower was for various rights Vector granted the grid operator to access the company's tunnel from Penrose to Hobson St in Auckland and a transmission corridor on the North Shore.
Vector shares rose 0.3 percent to $3.46, having increased 0.8 percent so far this year.
(BusinessDesk)
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Paul McBeth
Fri, 12 Aug 2016
Fri, 12 Aug 2016
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Vector wins again in tax dispute over $53m payment by Transpower
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