29 Jul 2010

Higher tax bill for hotel group

6:15 am on 29 July 2010

Millennium & Copthorne Hotels says the Government's tax changes will lift its deferred tax liability by about $26 million in the June financial year, which will result in a loss.

It says the change in its June year accounts, which are yet to be issued, is a one-off, non-cash charge which does not affect its cashflows.

The Government is lowering the company tax rate from 30% to 28% and scrapping the allowance for depreciation on buildings.

Millennium & Copthorne says it will pay an extra $1 million per year in tax from next year.