KEY POINTS:
Fletcher Building, the country's second largest listed company, said today its 2006/7 earnings will get a $70 million boost following an Inland Revenue ruling in its favour.
The news sent Fletcher shares up 12 cents to a record high of $11.80.
A tax benefit of $70m was reported in the 2006 accounts but it was fully provided for pending the outcome of the IRD audit review.
Fletcher said in a statement the dispute centred on some of its foreign sourced earnings.
"The Inland Revenue Department has advised that no further action will be taken in respect of this matter, and as a consequence the tax benefit will now be fully recognised, so increasing net earnings for the June 30, 2007 year by $70 million."
It said at this stage the company anticipated the tax benefit to be a once-off.
- NZPA
