The Inland Revenue Department (IRD) and four major banks including BNZ, Westpac, ASB Bank, and ANZ National have settled their long pending dispute as the concerned parties have accepted liability for a combined sum that exceeds $2.2 billion.

Inland Revenue commissioner Robert Russell and the Solicitor-General David Collins QC expressed happiness for amicable settlement of the dispute which is being considered as the largest commercial settlement in the history of New Zealand.

Dow Jones informed that Westpac will pay about $760m while BNZ, ANZ and ASB would pay $658m, $413.7m and $264m under the terms of the settlement. Westpac has not been entitled to any penalties under the mutually accepted terms of agreement.

George Frazis, the Chief Executive of Westpac New Zealand, said, "We entered these transactions relying upon expert advice and a ruling issued by the IRD in relation to a similar transaction, but we accept the court has ruled and that, on balance, it is best that we accept this industry settlement and move on."

BNZ Chief Executive Andrew Thorburn said that BNZ would continue to meet its debt and equity obligations and the recent development would have not any impact over it.