The beleaguered diversified property group in its 1H24 financial report, which recorded a statutory loss after tax of $136 million, has prepared for an adverse tax assessment after allegations of “double dipping” on tax deductions between 2012 and 2018.
Lawyer and previous tax advisor, Tony Watson, blew the whistle on the advice Lendlease was given and implemented.
Lendlease said the audit is progressing and the ATO has stated that it intends to issue a statement of its audit before 30 June 2024.
On Friday, 23 February, Lendlease issued a response to an Australian Financial Review story headlined “Lendlease reveals liability risk from PwC-advised $260m tax scheme”.
“It’s important to note that the ATO audit is ongoing, and as such, it is not possible to determine at this time any impact for Lendlease. Therefore, media reporting of any financial impact is purely speculative,” said Lendlease in the response.
“Tony Watson, who is quoted in the story, did not provide tax advice to Lendlease on the partial sale of our retirement living business. A number of his statements will be considered in Federal Court legal proceedings. Therefore, it’s not appropriate for us to comment on these matters. However, we deny his allegations and are actively defending the proceedings.
“We’re confident our tax treatment is consistent with the law and with the ATO’s 2002 tax ruling on the retirement living industry. We lodged our 2018 tax return on that basis and intend to vigorously defend our position, should the ATO not accept it.”
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