Oz slaps $629m tax bill on PE firm TPG

SYDNEY: Australian authorities have slapped US private equity (PE) firm TPG with a bill for 678 million Australian dollars ($629 million) in taxes and penalties, a move that is sending chills down the spines of foreign investors.

The tax bill is linked to TPG's Oct 29 sale of its stake in Australian retailer Myer Holdings Ltd., from which the Fort Worth, Texas-based company made A$1.58 billion ($1.46 billion).

The Australian Taxation Office has accused TPG of skipping out on paying Australian taxes on those profits by funneling the money to companies in tax havens such as the Cayman Islands and Luxembourg.