Lendlease ATO Update

Lendlease Corporation Limited (ASX: $LLC) received an amended income tax assessment from the Australian Taxation Office (ATO) on 10 May 2024. The assessment, totaling $112.1 million, is related to the ATO audit of the partial sale of the Retirement Living business in the 2018 financial year.

Lendlease's Response to ATO Assessment

Lendlease intends to request remission of the interest in full based on the ATO's previous written undertaking that no interest or penalties would be applied to the 2018 financial year. The company is confident of its position and will dispute the amended assessment.

Summary of ATO Assessment and Lendlease's Response

The ATO issued Lendlease with an amended income tax assessment totaling $112.1 million, pertaining to the partial sale of the Retirement Living business in 2018. Lendlease intends to request remission of the interest and is confident of its position, planning to dispute the amended assessment. The company has also highlighted that the ATO's position does not relate to deductions claimed by Lendlease. Additionally, Lendlease has sold down two further tranches of the units in the joint venture trust in the 2021 and 2022 financial years, totaling 50%, without amended assessments being issued. The company estimates potential additional tax of approximately $50 million if the ATO applies the same treatment to these subsequent sales.