The tax office has appealed to the High Court after the Full Federal Court found in favour of James Hardie Industries SE over a $242 million disputed tax assessment.

James Hardie, in a statement on Tuesday, said it had been notified that the Australian Taxation Office (ATO) had applied for special leave to appeal the decision to the High Court.

On August 22, the Federal Court found in favour of RCI Pty Ltd, a subsidiary of James Hardie, and ordered that RCI’s objection beallowed in full.

James Hardie said no cash would be exchanged between the ATO and RCI until the matter was resolved, except quarterly interest payments on the amended assessment of $184.3 million.

The legal battle relates to taxes paid in the fiscal year to March 1999. The ATO issued an amended tax assessment for the year in 2006, to which RCI objected. The ATO disallowed the objection. A subsequent appeal to the Federal Court by RCI was also rejected.

RCI then appealed to the full Federal Court, which found in the company’s favour.