As per the media a report, Bank of New Zealand (BNZ) is determined to appeal against the ruling in the tax case; which it lost in the Wellington High Court in July.

A bill of $650 million is being faced by the bank, after the court discovered that the bank did not pay tax by using used financial transactions which involved sending funds overseas.

The bank, which avoided paying tax between 1998 and 2005, was ordered by the court to pay $416 million in tax. BNZ is also supposed to pay $238 million in interest.

When the BNZ chief executive Andrew Thorburn was questioned about the court order, he said that it is a complex area of law, and the bank is not convinced that the High Court's decision was correct.

The BNZ, which is optimistic that it has strong grounds for an appeal, is making a $661 million provision for the case, in its accounts.

It should be noted BNZ is included in the list of five banks, which are facing action over more than $2 billion of disputed tax.