Tax appears to be the latest hurdle for James Hardie as it attempts to confront its asbestos liabilities.

While the company continues negotiations with the Federal Government to finalise compensation for victims, it appears the company may face a hefty tax payment as the result of its decision to sever itself from its asbestos subsidiaries in 2001.

The company is on the verge of signing a $1.5 billion asbestos compensation deal, but the tax setback would see it owing around $450 million more – a figure that has led the company to seek a ruling from the Australian Tax Office.

Meanwhile, James Hardie Chairman Meredith Hellicar told an Australian Council of Superannuation Investors conference last week in Melbourne that the company is not trying to avoid its commitments, and said it is “desperately” trying to move on.