The total amount comprises $50m towards unpaid taxes and fines of $22m. The fine comes after the company in its 2012 financial report stated that ATO is examining its Australian tax returns from 2004 to 2010, reported The Australian.
The tax authorities have claimed that the company has not paid adequate taxes for the undisclosed financial transactions carried out between 2004 and 2010.
Peabody Energy, however, advised that it would resort to legal action.
According to the company, the ATO issued a final assessment questioning unspecified financing transactions of $71.9m, including additional taxes of $50m, interest and penalties of $21.9m.
The company plans to proceed with litigation, it added.
Earlier in May 2013, ATO has conducted a lengthy investigation upon Xstrata-Glencore merger pertaining use of Xstrata’s Australian subsidiary in the $19bn takeover of Canadian miner Falconbridge.
