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Babcock & Brown, Australia's second-largest investment bank, said the US Internal Revenue Service might fine it US$135 million ($186.7 million) over tax transactions.
Babcock would defend its actions, after receiving a draft IRS notice, the Sydney firm said yesterday.
The final determination on a fine would not have a "material adverse" effect on Babcock's financial position, it said.
The matter relates to corporate tax shelters that may have been used by Babcock clients in the six years ended 1999.
- Agencies
