Lindsay guidance flags ATO fuel tax credit probe


Company intent on challenging notice of amended assessment

Lindsay guidance flags ATO fuel tax credit probe
Lindsay tells the ASX it aims to fend off the tax office's claims

 

An otherwise assured Lindsay Australia earnings guidance is tempered by an Australian Tax Office (ATO) notice of amended assessment relating to past fuel tax credit (FTC) claims.

The diversified road and rail freight firm expects unaudited earnings before interest, taxes, depreciation and amortisation (EBITDA) from underlying operations in the range of $44 million to $46 million for the financial year.

This represents an increase of 8.9 per cent to 13.8 per cent on FY2020 underlying EBITDA.

"This guidance remains subject to final audit and assessment of the last few trading weeks of the financial year, as well as the impact of any one-off issues, including the ATO Fuel Tax Credit (FTC) audit outlined further below," Lindsay adds.

That issue, which Lindsay notes it outlined in recent annual and interim reports, relates to the company being subject a FTC audit by the ATO.

The ATO has completed its audit and issued Lindsay with a notice of amended assessment, relating to net FTC previously assessed, the company advises.


How Lindsay's interim update hailed rail, here


"The notice relates to the review period of May 2017 to June 2019, which included claims for periods dating back to 2006.

"As at May 2020, the ATO's initial findings was that Lindsay had overclaimed approximately $4.89 million in FTCs.

"The amended notice of assessment is for an amount due of $6.16 million."

Lindsay asserts its belief it has reasonable grounds to dispute the ATO's audit findings and will continue to do so through the appropriate dispute resolution channels with the assistance of expert advisors.

"If Lindsay is unable to successfully dispute the ATO's findings prior to completion of the audited FY2021 statutory accounts, a one-off pre-tax expense of approximately $7.88 million (the revised assessment amount, plus interest and costs) would be included in the FY2021 accounts," the company adds.

"As the dispute relates to prior financial years, we do not anticipate a material impact on Lindsay FY2021 underlying operations or future earnings."

 

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