The company behind IGA supermarkets has settled a multi-million dollar dispute with the tax office.

Metcash said it will receive a partial refund of the $24.4 million in income tax it paid in mid-2011 as a result of the settlement.

But a tax expense of $10.8 million will also be included in its accounts for the 2013/14 financial year.

The Australian Taxation Office (ATO) had audited the company’s income tax returns for 2005 to 2008, resulting in a dispute over its inability to receive tax credits for its foreign subsidiaries.

Metcash said it was now up to date in it and the ATO’s review of its income tax affairs.