ATO orders Peabody to pay $72m in taxes and penalties

US coal giant Peabody Energy has been ordered to cough up about $22 million in fines and pay $50m in unpaid taxes after investigations by the Australian Taxation Office found it had not paid enough tax between 2004 and 2010.

The company which has extensive operations in Australia, including 11 mining operations across New South Wales and Queensland, says it plans to challenge the ruling which was handed down last month, The Australian reports.

AdvertisementIn its 2012 financial report submitted to the Australian Securities & Investments Commission, Peabody said its Australian tax returns from 2004 to 2010 were under investigation by the ATO.

"In April, the ATO issued a final assessment challenging certain financing transactions with a total assessment of $71.9m, comprised of additional taxes of $50m, plus interest and penalties of $21.9m," Peabody said.

"The company plans to proceed with litigation."

Earlier this year, Australian Mining reported Peabody had recorded a $US1 billion loss in the Q4 2012, with a full-year 2012 loss of $US575.1 million.

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