Medical centres operator Primary Health Care could be in line for a $190 million windfall from the tax office.
The deputy commissioner of taxation has found Primary is owed an $18 million refund in relation to the acquisition of medical and healthcare practices in 2010.
Primary's growth strategy includes the acquisition of a number of mostly smaller medical practices each year.
It is seeking similar tax deductions related to acquisitions over 2011-2014.
The company estimates that based on the 2010 decision by the tax office, it could receive a total cash refund of $130 million for the period between 2010 and 2014.
Primary could also be eligible for more refunds dating back as far as fiscal 2003, which means it could stand to receive about $190 million in total.
But the deductions back to 2003 depend on the tax office's discretion in allowing Primary to lodge an objection to the original tax assessments.
That's because the time allowed for lodging objections going back that far has lapsed.
Primary expects to recognise most of the $130 million cash refund for 2010 to 2014 as a credit to income tax expense in its 2015 accounts.
It expects to use the cash refund to reduce debt.
The company said the tax office decision related to tax deductibility for Primary only, and it did not necessarily mean that the tax office would reconsider the tax position of healthcare practitioners whose practices were
acquired by Primary.
Shares in Primary were two cents lower at $5.08 at 1228 AEST.
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