More banks face tax slug over hybrid capital

More banks than just St George Bank may have to pay more tax, and also pay back tax and penalties on interest deductions on deeply subordinated debt. St George Bank already faces a back tax bill of $40 million, which could increase to $200 million.
The Australian Taxation Office has been looking at similar funding mechanisms used by other major banks, with National Australia Bank disputing a claim for more than $300 million.

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