Aussie banks pay $1.76bn to settle tax avoidance case

New Zealand’s four biggest banks have hit a settlement with the taxman over long-run tax avoidance case by agreeing to pay $1.76 billion.

Four banks involved in the case viz. Westpac, BNZ, ANZ National, the ASB Bank, which were fighting the case for about five years, reached the settlement with the Inland Revenue Department on Wednesday.

Under the terms of the settlement, Westpac, BNZ, ANZ and ASB will pay NZ$885 million, NZ$658 million, NZ$400 million and ASB NZ$250 million respectively.

Jenny Fagg, the CEO of ANZ National, said that she was happy over the settlement in relation to six of the seven disputed transactions.

The Commissioner of Inland Revenue has reportedly agreed not to impose fines.

Earlier, Inland Revenue Department had claimed that the concerned banks were avoiding tax via a complex mechanism called structured finance.