Perpetuals Tax Bill on KKR Deal Balloons

Perpetual Limited (ASX: PPT) faces a significantly higher tax liability related to its asset sale to private equity firm KKR. The deal, which transfers Perpetual's name and key corporate trust and wealth management businesses to KKR, has prompted the Australian Taxation Office (ATO) to revise the estimated tax bill.

Initially projected at $106 million to $227 million, the liability is now expected to range between $493 million and $529 million. This adjustment reduces expected cash returns to shareholders from $8.38–$9.82 per share to $5.74–$6.42 per share. Perpetual expressed disappointment, stating it disagrees with the ATO's assessment and maintains its belief that the provisions should not apply. The company has signaled its intent to continue discussions with the ATO to resolve the matter.

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