the test, page-4

re: looks to be recovering Paul, the funds are having a ball, some for me and then some for you and then some for me again.

The matter covered by their ASX notice yesterday has been around for years, the company has always maintained they have little or no liability. It is in regard to an investment by a number of investors who joined a R & D syndicate set up by Price Waterhouse under tax rules applying at that time. Subsequently the Government changed the tax laws and disallowed the investor's claim for deductions. Apparently there were a number of syndicates similar to this, in the only one that has come to court so far the investors won their case against the ATO.
In the event that this Visible Voice syndicate loses their case against the ATO they then presumably would take action against Redflex and if that was successful then Redflex would most likely proceed against Price Waterhouse.
I would imagine legal fees are the main worry for RDF in the event that the investors lose their case against the ATO and proceed further but as I said the company's advice is that there is only a very small chance of having to pay anything in settlement no matter how it goes.