Jewellery company Michael Hill International is paying out $30.3 million to settle a tax dispute with Inland Revenue.
The directors of Michael Hill announced today that a confidential settlement brought a close to the dispute that arose in late 2008 when the company shifted its main operations to Australia.
The company said in a statement an additional tax liability of $30.3m for the period ending June 2015 will be recognised by the company. No penalties will be paid.
The tax bill won't have any impact on Michael Hill's ongoing operations and won't affect the planned roll out of new stores, the statement said.
"In settling this dispute the Board has been conscious of the increasing difficulties for our shareholders in trying to understand and quantify the potential price impact of the contingency should an adverse outcome result (reflecting the uncertainty and risk involved in any formal litigation).
