Building materials specialist James Hardie Industries SE announced on Monday that it would enter trading halt from 1400 AEST on September 1 pending the Federal Court decision on its appeal against a tax assessment that runs to more than $US330.4 million or $A366.62 million.

The company is scheduled to appear before the Court on Wednesday through its subsidiary RCI Pty LTD, which filed the appeal in September in relation to its 1999 income tax returns issued by the Australian Tax Office in 2006.

Should the Federal Court rules on its favour, James Hardie said that it would recover up to $274.8 million from payments remitted based on the amended assessment but a contrasting decision would mean a charge of $366.62 million, which will be recorded while the appeal is being heard.

For now, James Hardie said that all payment made as of June 30 this year, with any attached interests gained, would be regarded as a deposit though the company clarified that it would continue to honour all debt covenants once an orders has been released requiring it to pay up some charges.