Independent News & Media is "fully confident" that its tax position in New Zealand is correct and will not lead to any liability, shareholders in the media group heard yesterday.
Independent's annual general meeting was told that a New Zealand tax audit relating to licensing agreements from 2001 should not be problematic.
Responding to a shareholder question on the matter, Independent's chief financial officer Donal Buggy said the firm was confident, on the basis of independent advice received, that its tax position was "fully correct". Mr Buggy said this was why Independent had made no financial provision in relation to the matter. J Avery-Gee, a shareholder who said he represented Allied Irish Nominees, an entity controlling 3.5 per cent of Independent, had asked a number of detailed questions about the tax audit and the exposure it could create for the group.
Allied Irish Nominees does not represent AIB but, instead, a group of private shareholders whose shares are grouped under an entity administered by the bank.
Shareholders at the agm, held in Dublin's Sandyford suburb, also heard that Independent was confident that 2006 would bring another year of "superior earnings growth".
Sir Anthony O'Reilly, chief executive at the company, said: "Early results for 2006 are in line with expectations and we look forward to another successful year."
He said the media of the future should be indifferent to location, language and platform, but he declined to specify plans for Independent to expand into new markets. He did, however, express a particular interest in acquisitions in eastern Europe and was upbeat about growth in the firm's existing investment in India.
Gavin O'Reilly, Independent's chief operating officer, said the firm was no closer to making a purchase in Russia than it had been in March, when the possibility became public.
Mr O'Reilly said he could neither "confirm nor deny" Independent's interest in buying the domestic property portal Myhome.ie.
Shares in Independent fell by one cent to €2.26 in a weak market yesterday. The firm is due to issue a more detailed pre-close trading update on June 26th. Sir Anthony, who has turned 70, said he was not considering stepping back from any of his executive roles in light of his age.
