The ATO had originally slapped Orica with revised tax assessments for 2004,2005 and 2006 years totalling $50.6 million,according to Orica'sannual report.
Federal Court judge Tony Pagone found Orica used three schemes,which in part had the group's financing arm,Orica Finance,borrow $US265 million from its low-income-producing United States subsidiary to provide the entity with interest payments while assuming some of the entity's losses.
At the same time Orica Finance provided loans to Orica's New Zealand and Canadian businesses and received interest on these loans. It was these"circular'"financing arrangements that led to the ATO hitting Orica with the revised tax bill.
"The cumulative effect of the transactions in question over Orica's 2002 to 2006 income years was a cumulative increase in the consolidated profit of the Orica group of A$33.8m,"Justice Pagone said.
The matter saw former managing director Malcolm Broomhead,who has since the trial been named chairman of the company,take the stand to defend his reasons for using a complex financing arrangement.
During the trial Mr Broomhead told the court he had approved the complex inter-company arrangements because it met his goal of lifting profits.