Indiana Resources (ASX: IDA) is navigating complex financial and legal challenges following the $150.1 million settlement with the Tanzanian government over the Ntaka Hill nickel project. The company is seeking a ruling from the Australian Tax Office (ATO) regarding the optimal method for distributing approximately $50.1 million, the final tranche of the settlement, to its shareholders, targeting a return before June 30, 2025. A capital return of $32.4 million is currently the maximum amount considered.
Simultaneously, Indiana faces a tax claim from the Tanzanian Revenue Authority, which alleges that its subsidiary, Nachingwea Nickel Limited (NNL), owes taxes on the settlement amount. Indiana disputes this claim, asserting that such an assessment would violate the settlement deed. Adding to the complexity, a dispute has emerged among shareholders of Ntaka Nickel Holdings (NNHL) concerning the distribution of settlement funds, leading Loricatus Resource Investments to issue a notice of arbitration. Indiana is awaiting a timeline for the arbitration hearing, compounding the challenges of shareholder payouts and tax compliance.
