Sleep disorder device specialist ResMed will fight a demand from the Australian Taxation Office for $US190.1 million ($A266 million).
Dual-listed ResMed Inc, which makes devices to treat sleep disorders, says it disagrees with an ATO assessment, received in March, that it owes $US151.7 million in additional income tax and a further $US38.4 million in interest.
The company said on Friday it will mount a legal challenge but has agreed to pay $US75.9 million, or 50 per cent of the extra tax and will only pay the remainder if its action is unsuccessful.
"ResMed continues to believe it will be successful in defending its position and therefore has not recognised any income tax expense in relation to these assessments," ResMed said in a statement
ResMed, which is listed in Australia and New York, on Friday reported a 15 per cent lift in third-quarter revenue to $US591.6 million ($A828.2 million) and a 25 per cent rise in quarterly net income to $US110.1 million ($A154.1 million).
ResMed said its cloud-connected medical device strategy is succeeding, the mask business performed well across all markets, and the cloud-based software-as-a-service business grew rapidly in the three months to March 31.
ResMed shares closed 30 cents, or 2.4 per cent, higher to $12.95.
