- • Keybridge has received a $5.13 million tax refund from the ATO as a result of an amended
2008 Income Tax Return (ITR)
- • Potential Franking Deficit Tax Liability of up to $4.35 million
- • Corporate Debt reduced to USD19.5 million
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Keybridge, with the assistance of its tax adviser, has undertaken a review of the lodged ITRs for the
years 2008 to 2010. The scope of the review was to determine whether the treatment of recognition
of foreign exchange (FX) fluctuations was correctly recorded for both foreign currency denominated
investments and borrowings.
In 2008, after writing-off all seven of its investments in US Securitisation (USSEC) investments to nil
in its financial accounts, the Company claimed as a bad debt deduction five of its USSEC
investments. Two investments were incorrectly excluded as deductions in the 2008 ITR.
Accordingly, Keybridge submitted an amended 2008 ITR in December 2012, and included the
previously excluded USSEC bad debt deductions, as well as an adjustment to realised FX gains and
losses on an asset by asset basis.
Keybridge received a payment from the ATO of $5.13 million on 26 March 2013, being the refund
entitlement of $4.35 million plus $0.78 million interest.
Per the terms of the Company's Debt Facility, the full amount received is required to be used to
reduce the level of debt outreduced to USD19.5 million.
As Keybridge has previously distributed all of its available franking credits, this refund has placed the
Company in an interim franking deficit position of $4.35 million. Subject to any variation in the
Company's franking position, this may result in a franking deficit tax liability of up to $4.35 million as at
30 June 2013.
