17-02-2014, 06:20 AM
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Rupert Murdoch's News Corp has blasted an $880 million hole in the federal budget after winning a long-running battle with the Tax Office over deductions.
The huge windfall, revealed in the US group's accounts a week ago in New York, was at a time when Murdoch's newspapers were critical of the budget and called for deep cuts, MacroBusiness reports.
The drama over the payout, one of the largest cash payments made by the Tax Office, played out behind the scenes during the federal election.
The ATO had refused to allow the deduction, which relates to a 1989 restructure within Mr Murdoch's media empire in which no money changed hands.
News Corp defeated the ATO in the Full Federal Court in July and the money began flowing to the company over the Christmas break.
The payout represents a significant proportion of the $16.8 billion deterioration in the federal budget announced by Treasurer Joe Hockey in December. It all but wipes out $1.1 billion in savings announced by Mr Hockey when he unveiled the mid-year economic and fiscal outlook on December 17.
Hockey did not mention the payout at the time, instead blaming the budget's fiscal deterioration'' on a softer economic outlook, downgraded exports forecasts and the previous Labor government.
Rupert Murdoch's News Corp has blasted an $880 million hole in the federal budget after winning a long-running battle with the Tax Office over deductions.
The huge windfall, revealed in the US group's accounts a week ago in New York, was at a time when Murdoch's newspapers were critical of the budget and called for deep cuts, MacroBusiness reports.
The drama over the payout, one of the largest cash payments made by the Tax Office, played out behind the scenes during the federal election.
The ATO had refused to allow the deduction, which relates to a 1989 restructure within Mr Murdoch's media empire in which no money changed hands.
News Corp defeated the ATO in the Full Federal Court in July and the money began flowing to the company over the Christmas break.
The payout represents a significant proportion of the $16.8 billion deterioration in the federal budget announced by Treasurer Joe Hockey in December. It all but wipes out $1.1 billion in savings announced by Mr Hockey when he unveiled the mid-year economic and fiscal outlook on December 17.
Hockey did not mention the payout at the time, instead blaming the budget's fiscal deterioration'' on a softer economic outlook, downgraded exports forecasts and the previous Labor government.
"The philosophers have only interpreted the world, in various ways. The point, however, is to change it." Karl Marx
"He would, wouldn't he?" Mandy Rice-Davies. When asked in court whether she knew that Lord Astor had denied having sex with her.
“I think it would be a good idea” Ghandi, when asked about Western Civilisation.
"He would, wouldn't he?" Mandy Rice-Davies. When asked in court whether she knew that Lord Astor had denied having sex with her.
“I think it would be a good idea” Ghandi, when asked about Western Civilisation.