James Hardie will receive more than $300 million after winning a legal dispute with the Australian Taxation Office (ATO).

More than one third of the amount will be paid into a compensation fund for sufferers of asbestos-related diseases.

The High Court of Australia on Friday dismissed the ATO’s application for special leave to appeal a 2011 Federal Court decision that had been in favour of James Hardie.

The dismissal by the High Court finalises the dispute, which had run since 2006.

As a result, the ATO is obliged to refund $248 million, plus interest, which James Hardie estimates will be about $63 million.

A portion of the company’s legal costs will also be paid by the ATO.

James Hardie said it would contribute 35 per cent of the refunded amount, or $108.85 million, to the asbestos injuries compensation fund if it is received before the end of March.

The fund was set up by James Hardie in 2006 to compensate sufferers of asbestos-related diseases, and relies on annual contributions from the company’s free cash flow.

The dispute related to an amended tax assessment provided to a James Hardie subsidiary, RCI, in 2006.

The amendment related to net capital gain arising from an internal restructure in the company in 1998.

The ATO disallowed RCI’s objection to the amended assessment in 2007, and RCI took the matter to the Federal Court.

The Federal Court dismissed RCI’s application, but a subsequent appeal to the Full Federal Court in August 2011 was upheld.

James Hardie shares lost 21 cents, or 2.83 per cent, to close at $7.22.