Alcoa of Australia Limited, a wholly-owned subsidiary of Alcoa Corporation, announced on April 30, 2025, that it welcomed a decision by the Administrative Review Tribunal of Australia (ART). The ART ruled that no additional tax is owed related to disputed transfer pricing of certain historic third-party alumina sales.
Alcoa had previously paid approximately $74 million (A$107 million) in the third quarter of 2020 in relation to this dispute. As of March 31, 2025, the prepaid tax asset associated with this payment stood at $67 million (A$107 million).
Should the Australian Taxation Office (ATO) choose not to appeal the ART’s decision within 28 days, the $67 million is expected to be refunded to Alcoa in June 2025. However, cash taxes of approximately $216 million (A$343 million) related to interest deductions will be payable by Alcoa by June 1, 2026, resulting in a net cash impact of approximately $149 million (A$236 million) over the next fourteen months.
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