UPDATE 1-Australia’s James Hardie may book $330 mln tax charge

* May need to take charge of about $330.4 mln

* Need to pay until case fully resolved

* To be compliant with debt covenants
(Adds company statement, shares)

SYDNEY, Sep 1 (BestGrowthStock) – Australian building materials
firm James Hardie Industries Ltd (JHX.AX: ) has lost a federal
court appeal against a tax authority ruling on Wednesday and
may need to take a charge of about $330.4 million.

However, pending an appeal and full resolution, the firm
will only have to make quarterly interest payments on the
unpaid balance, James Hardie said in a statement.

The case relates to an assessment by the Australian
Taxation Office of the tax paid by a Hardie subsidiary, RCI Pty
Ltd, in the year ended March 1999. “Had the company been
required to take this charge at 30 June 2010, the charge would
have been an estimated amount of $330.4 million,” James Hardie
said in a statement.

It added it will remain in compliance with its debt
covenants if it pays the charge.

James Hardie will have 21 days to lodge an appeal and
earlier said it would file an appeal if it lost.

James Hardie shares ended down 1.5 percent at A$5.25 after
trading as high as A$5.49 earlier on Wednesday.
(Reporting by Adrian Bathgate; editing by Balazs Koranyi)

UPDATE 1-Australia’s James Hardie may book $330 mln tax charge