The fact that the ATO has not instigated recovery proceedings yet makes me think that they are looking for a settlement.
Think that Bluescope got hit with an assessment after CFE and they agreed to pay a certain amount whilst the issue was challenged in the courts.
In this case, the ATO extended till 31/10 any recovery proceedings and have now gone quiet on this. It is possible that they may not be as confident about their position. Maybe they have got external advice or are waiting on external legal advice as to how they should proceed.
TS said that CFE are very confident on their positions and maybe the ATO is hoping to get a face saving agreement by negotiating a settlement.
All speculation though. What we do know is CFE got legal advice so I think penalty and interest will be waived as part of any final settlement.
CFE Price at posting:
23.5¢ Sentiment: None Disclosure: Held
