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IBM loses out to ATO on royalties

April 20, 2011

Salman Shaheen - ITR

Computer company IBM has lost a two-year dispute with the Australian Tax Office (ATO) over royalties paid to its American parent.

IBM Australia had claimed a partial refund of royalty withholding tax levied on payments it made to two US taxpayers, IBM Corporation and IBM World Trade Corporation under a software licence agreement (SLA).

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