The former No.1 village operator and construction heavyweight says it will oppose payment of $24.5 million in interest and dispute a $112 million tax bill issued to on Friday over its sale of 25% of the retirement village business to Dutch investment group APG Asset Management in 2018. 

 In an update to the ASX on Monday, Lendlease said the Australian Taxation Office had hit it with a a new tax assessment finding the construction giant was liable for a $62.4 million capital gains tax for the sale of its stake, plus a further $25.2 million tax for the sale of units in a joint venture trust and a further $24.5 million in interest. 

Lendlease, which still owns 25.1% of Keyton, said it had not yet received amended assessments for two more sales of holdings in the retirement business, but if the ATO made further findings, it could be exposed to a further $50 million in tax plus interest. 

“Lendlease proactively contacted the ATO to review the tax treatment applied to the 2018 sale eight months prior to submitting its tax return and also obtained independent advice before lodgement,” the company said, 

"Lendlease is confident of its position and will dispute the amended assessment.” 

Aware Super, which holds a 50% stake in Lendlease, said on Sunday that it has been in talks with Lendlease. 

“Our focus remains, as always, on achieving and protecting the best financial interests of members over the long term, and we will have this commitment front of mind as we continue our engagement with the company,” an Aware Super spokesman said. 

Browse villages.com.au for the latest on Seniors Living including availability. 

COTA Australia Chair Christopher Pyne relives his parliamentary days with Anglicare Sydney CEO Simon Miller at LEADERS SUMMIT 2024