Alcoa threatens to battle the Australian Taxation Office in court over a tax bill that could top $1 billion – ABC News

US aluminium giant Alcoa has flagged its prepared to battle with the Australian Tax Office (ATO) in court after its local operations were hit with a $921 million tax bill that could easily grow above $1 billion if the agency issues administrative penalties next month.
Key points:

• The ATO is claiming Alcoa under-priced alumina sales that eventually flowed through to Aluminium Bahrain, also known as Alba
• The ATO says the company owes $214 million in back taxes, plus interest worth $707 million
• Alcoa is fighting the tax bill and is prepared to take the battle to court

The tax bill applies to Alcoa of Australia Limited (AoA), which is 60 per cent owned by Alcoa and 40 per cent owned by ASX-listed Alumina.
In a statement to the ASX on Wednesday, Alumina chief executive Mike Ferraro said the ATO had carried out an investigation focused on AoA’s sales over a 20-year period.
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The ATO is claiming AoA under-priced alumina sales that eventually flowed through to Aluminium Bahrain, also known as Alba.
Alba is one of the largest industrial companies in the Middle East and one of the largest aluminium producers in the world.
Alumina’s statement said the ATO was claiming the company owed $214 million in back taxes, plus interest worth $707 million.
The ATO has not yet indicated the amount of administrative penalties it proposes to apply on top of the tax and interest bills, but once it issues this assessment in August, the amount the revenue agency claims the company owes it could easily hit $1 billion.
Alcoa and Alumina have rejected the ATO’s claims and say AoA intends to challenge the tax bill.
“AoA will defend its position in respect of the ATO’s

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