As foreshadowed in the company's announcement on June 1st 2012, BlueScope Steel Limited confirms that it has been issued with amended assessments by the Australian Taxation Office in relation to a sale and leaseback transaction in the 2007 income year.

BlueScope believes that its treatment of the transaction is correct and is supported by both existing case law and the ATO's published ruling on sale and leaseback transactions.

BlueScope will vigorously defend the assessments and pursue all necessary avenues of objection. Resolution of this matter is likely to take some time.

Following discussions with the ATO, BlueScope has agreed to a AUD 21,215,719 part payment pending determination of the dispute.

In BlueScope's view, this amount is calculated based on the real issue in dispute, being the denial of the deduction for the lease rentals paid. This amount will be paid in July 2012 and is fully refundable in the event the matter is resolved in favor of the company.

Source - BlueScope Steel

(www.steelguru.com)