tax update, page-10

There's a big difference between "up to 3 years" and 3 years. The former is just a realistic outside time estimate for settling a dispute; it won't necessarily take that long but it is responsible to recognise that a dispute with the Revenue over a substantial sum may take time to resolve.

The payment is actually more or less fiscally neutral; it is just being held by the ATO instead of CFE, probably attracts a lower interest rate and is unavailable for use by the company. On the other hand, it stops the clock ticking for a significant contingent liability.

As the announcement points out, there is more than enough left in the kitty to cover costs and a responsible company wouldn't be using disputed money in any event.

I am surprised that this had any effect on the SP; as for things suddenly becoming "very bleak" I don't see this as being anything unexpected or in any way changing the landscape from where it was before the announcement.

Sure, no-one likes having to pay taxes but they are a fact of life, as are disputes with the Revenue. It doesn't alter the fundamentals of the business.