Sharechat Logo

Trustees Executors reaches $4.9M settlement with IRD after audit of $24M payment in 2013

Tuesday 7th February 2017

Text too small?

 Trustees Executors, the trust company owned by Sterling Grace Corp, reached an agreement to pay about $4.9 million following an Inland Revenue Department audit of its 2013 tax year and the treatment of a $24 million legal settlement, its accounts show.

The firm hasn't disclosed the source of the settlement, which it recorded as other income in the year ended Sept. 30, 2013. That same year it paid $25.6 million, or $7.97 a share in dividends, more than five times more than its 2012 payment of $4.6 million, or $1.44 a share. The tax debt was treated as a contingent liability in its 2015 year.

Trustees Executors paid tax of $2.6 million in 2013 on profit of $33.6 million, a tax rate of just 7.7 percent. In its 2016 year it paid tax of $8.4 million on profit of $12.5 million, including the $4.9 million for 2013.

The firm has had numerous court battles since Sterling Grace acquired what was then known as Tower Trust in 2003, including actions against Perpetual Trust, Fund Managers Canterbury and the Official Assignee. The business was a listed company on the New Zealand stock exchange before being acquired by National Insurance Company in 1970. It became a subsidiary of Tower Corp in 1988 and was renamed Tower Trust New Zealand in April 1999 after Tower was demutualised.

Revenue in its latest year rose 5.2 percent to $38.4 million, of which the bulk was commission and fees.

 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares rise as Skellerup posts record profit
NZ dollar gets lift from news Chinese delegation heading to US for trade talks
Skellerup best performing stock after annual result blows analysts out of the water
Tru-Test to sell businesses to Datamars for $147.9 million
Downer's NZ revenue jumps 59% as Hawkins makes full contribution
More ambition needed to lift productivity, home-building, Twyford says
UPDATE: Skellerup lifts annual profit 23% to a record; shares hit new high
Downer's NZ revenue jumps 59% as Hawkins makes full contribution
More ambition needed to lift productivity, home-building, Twyford says
Precinct Properties still backs Fletcher as Commercial Bay development pushed out

IRG See IRG research reports