Macquarie loses tax case

Federal Court dismisses dispute with ATO about offshore banking unit's tax rate.

The Tax Office has won a fight with investment bank Macquarie Group (MQG) as a court summarily dismissed a dispute about the tax regime of its offshore banking unit, The Australian Financial Review reports.

According to the newspaper, a Federal Court judge said the bank had no reasonable prospect of success in overturning amended assessments about the unit dating back five years.

Offshore banking units are taxed at 10% instead of the 30% corporate rate.

The case followed the bank's attempt to stop the ATO from issuing amended assessments, the AFR reports.