[update] Sony Australia will appeal five years' worth of tax return adjustments; no impact on local PlayStation business.

[Update]

A Sony Computer Entertainment Australia spokesperson has confirmed to GameSpot that the local PlayStation business has not been affected by the dispute.

"The Australian Tax Office (ATO) issued assessments against Sony Australia has no impact on the Sony Computer Entertainment Australia Pty Ltd business. Sony Computer Entertainment Australia is a totally separate legal entity," they said.

The original story is available below

Sony Australia is currently in dispute with the Australian Taxation Office (ATO) for around A$53 million of back taxes and penalties, according to a report by the Australian Financial Review.

Exact specifics of the disagreement are unclear, but are believed to be tied to the ATO's increasing scrutiny of multinational organisations and the distribution of local earnings outside of Australian borders.

Financial notes released by Sony indicate that the business appealed a series of amended assessments issued by the tax body in May this year, linked to five years of returns, from 2005 to 2008, as well as 2010. The total amount of additional tax is reportedly A$32.7 million, with interest of A$17.7 million and further penalties totalling A$3.3 million.

"[Sony Australia] is satisfied that its calculation of taxable income is consistent with all relevant legislations, and has commenced appeal processes to dispute the notice of amended assessments," the company responded, regarding its financial standing.

A Sony Australia spokesman confirmed that the appeals process is ongoing, and said that the company would challenge further taxes claimed by the ATO, but declined to elaborate on the situation.

"As discussions are ongoing, we're unable to comment further at this point," he told the Australian Financial Review.

GameSpot contacted the Australian Taxation Office seeking further information, but a spokesperson declined to comment, citing privacy laws.

While the claims are reportedly being levelled at parent company Sony Australia, it's unclear what, if any, impact the proceedings will have against Sony Computer Entertainment Australia and its PlayStation brand. A representative could not be reached for comment at the time of publication.

GameSpot will update the story as more information comes to hand.

Read and Post Comments | Get the full article at GameSpot