The Australian Prudential Regulation Authority (APRA) says the potential $43 million tax liability of United Medical Protection (UMP) will not affect the company’s future. APRA GM Enforcement Darryl Roberts says while UMP may have a potential tax liability of up to $43 million, the risk is manageable and was identified by the UMP provisional liquidator and APRA “as long ago as May 2002”.

The issue originates from UMP’s status as a mutual and the fact it has been treated as a group for taxation purposes. “On current financial projections, UMP will still be able to manage a tax liability in the event of an ATO ruling to that effect,” Dr Roberts said. “APRA remains confident that the UMP group is on track to make a full recovery.”