How Nova made $43 million disappear

The Australian Financial Review is reporting (subscription required) that Lachlan Murdoch’s Nova Entertainment, has finally moved almost all of his profits off the balance sheet, into more tax-effective domains.

In December last year accounts for the holding company, Nova Entertainment Radio Investments, show profit had dived from $19.6 million in 2018 to just $3.7 million.
According to the AFR, $43 million from Nova’s bottom line last year was paid to other Lachlan companies for related-party debt and was paid for exclusive use agreements.
These are licensing fees that Nova pays to related parties and the licences are held by three Australian companies which state that they operate entirely in the UK, where they pay tax at 19 per cent rather than 30 per cent in Australia.



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