The Australian Taxation Office is chasing private equity company Texas Pacific Group with a tax bill of $452 million, part of the proceeds from the float of department store chain Myer.
TPG, which bought Myer in 2006 in conjunction with fellow private equity firm Blum Capital and the Myer family, completely sold out of its stake in Myer in last month’s float. TPG and Blum received almost $1.6 billion in the float.
According to reports in News Limited papers, the ATO sought an injunction in the Victorian Supreme Court against two companies related to TPG, preventing the firm from dealing with a bank account that was supposed to contain the float proceeds.
But the court action was dismissed yesterday after it became clear the account was all but empty.
There is no suggestion TPG was trying to avoid tax or even knew of the ATO’s $452 million claim at the time the money was moved out of the account.
The tax office is pursuing two offshore companies for the $452 million – TPG Newbridge Myer (based in the Cayman Islands) and Luxembourg-based NB Queen SARL.
This morning, TPG issued a statement saying it believes it has met its tax obligations from the float.
“We strongly believe we have met all of our Australian tax obligations in connection with our investment in Myer Department Stores and our other investment activities in Australia and at all times have complied with Australian taxation laws and will continue to do so in the future,” TPG said in a statement.
“While we have not been contacted by the Australian Tax Office regarding the matter raised by the ATO yesterday, we intend to cooperate fully with any inquiry they make as we have done so in the past.”
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
