A new $412 million tax bill will not dent James Hardie’s commitment to compensating asbestos victims, the company says.

Its 1999 restructure resulted in a number of capital gains that the Australian Taxation Office has now deemed to be taxable income. James Hardie continues to dispute the decision. The full payment (including $43 million in non-payment penalties and $197 million worth of general interest) is due for payment on April 26.

CFO Russell Chenu says the company will consider asking to pay via instalments as it continues its appeals. He believes it has a near 50/50 chance of having the assessment overturned.

“James Hardie strongly disputes the assessment and will pursue all avenues of objection and appeal.”

Mr Chenu says the company has adequate cash reserves and finance options to cover the bill. These are in addition to money set aside for an initial funding payment to its proposed compensation fund for asbestos victims.

Once it gets off the ground, the compensation fund is set to be the largest scheme of its kind in Australia’s history. James Hardie has committed to providing uncapped total funding for at least the next 40 years.