IRD dropping Tower appeal

WELLINGTON - Tower Corp says its Tower Financial Services Group has won a proceeding against the Inland Revenue Department.

The battle began in 1987 when Tower Insurance was assessed for income tax of $33 million over the sale of its 30 per cent interest in Southpac.

Tower disputed this amount and the case has been heard in the High Court and a full Court of Appeal, where the five appeal judges found in favour of Tower in an action brought by Inland Revenue.

The department now says it will drop an appeal to the Privy Council. - NZPA