A series of currency transactions in 1989 have led to an $882 million government payout to media giant News Corp.

In July 2013, News Corp. was reportedly paid the money it believed it was owed from deals made 24 years before.

The Australian Tax Office (ATO) tried to prevent the approval of a $2 billion tax deduction claimed by 19 subsidiaries of News Corp., but was overruled last year in the Federal Court of Appeal.

The supposed losses were worth about $600 million, but the final figure has landed at $882 million after interest.

The full amount of the payment has been revealed in accounts published by News Corp. in the US, which said the company had received the money from a “foreign tax authority”. The documents also reveal that an existing agreement meant the money was passed on to 21st Century Fox.

Fairfax Media outlets say the ATO has paid out one of the largest single sums in its history after taking legal advice not to continue with appeals.

In an interview this week, Prime Minister Tony Abbott denied knowledge of the payout, saying; "the facts are unknown to me."

"This is something which is new to me and I'll have to take that one on notice," Mr Abbott said.

US News Corp's breakdown of its accounts repeatedly mentions significant revenue losses “driven by the negative impact of foreign exchange coupled with weakness in the Australian market”, which some have suggested explains the eagerness to recoup from these areas.

The financial documents refer to the case in cryptic terms, saying only that “the foreign tax authority determined that it would not appeal a favourable court ruling received by the Company in July 2013 and therefore, a portion of the uncertain matter was resolved...the remainder of the uncertain matter was resolved during the three months ended December 31, 2013.”

News Corp. reported it received $US654 million from the ATO, with a further $US140 million still owing at the end of last year. It also said it had paid $US573 million Rupert Murdoch's 21st Century Fox.

For many, the most perplexing part of the situation is the nature of the deals that led to the massive tax repayment.

Original reports said that a 1989 meeting of four executives from various News Corporation subsidiaries saw the exchange of cheques and shares between several different companies, countries and currencies.

No actual funds were moved or costs incurred, just a series of paper transactions.

When some of the loans were unwound in 2000 and 2001, News Corp's Australian subsidiaries recorded a $2 billion financial loss due to the high Australian dollar at the time, while other arms of the company based in tax havens recorded a $2 billion gain.

Regardless of the money only being moved within the giant media conglomerate, by July 2013 it appears the 'loss' had transformed into a payment owed, which was the subject of aggressive legal attempts by News Corp to regain.

The reported events have sparked an up-welling of negative sentiment toward the Australian tax system for allowing such a payment. More general complaints suggest the system is overly complex, heavily favours large businesses, and freely allows the use of tax havens and regulatory arbitrage for profit.