Australia & India: Foster’s notified of a potential tax claim related to its former brewing business in India

Foster’s Group Limited said on April, 6 it has been notified of a potential A$39.5 million claim under an indemnity provided to SABMiller Group in relation to Foster’s former brewing business in India now owned by SABMiller.

The potential claim relates to a notice of demand issued by the Director of Income Tax in India to SABMiller for tax and interest. Foster’s is confident of the positions that were taken in relation to Indian tax. Those positions will be defended vigorously in the Indian Courts, Australia’s biggest brewer said.

In the event that the demerger of Foster’s proceeds, any liability under the indemnity will remain with Foster’s, the company said.

06 April, 2011