Building product specialist James Hardie Industries SE will have to shell out a total of $370 million after all as its subsidiary RCI Pty Ltd's tax appeal before the Federal Court was ordered dismissed on Wednesday.

Justice Margaret Stone said that she was convinced that James Hardie was directly and indirectly involved in a scheme to obtain a considerable tax benefit for its wholly-owned subsidiary RCI.

The decision was handed down on the appeal filed by James Hardie in September last year questioning a 2006 tax assessment issued by the Australian Tax Office for RCI's income tax obligation for 1999.

Earlier on Monday, James Hardie had indicated that if the Federal Court should rule against RCI's appeal, the charge of $371.3 million would have to be recorded while the appeal process is being sustained.

The company also announced that it would enter trading halt by 1400 AEST on Wednesday and as of this writing, trading of James Hardie shares was still suspended.

For the time being, James Hardie said that as of the end of June this year, it would record all payments made, with all related interest gained, as a deposit though the company clarified that it would honour all debt covenants should a charge would be required to be taken.