The Federal Court yesterday reversed its decision to allow the Australian Taxation Office to serve documents on two tax-haven companies via an Australian representative, in a major blow to the ATO’s plans to claw back $739 million from the profits of the Myer float.

The ATO has been chasing companies linked to private equity giant TPG Capital for two years after a last-minute attempt to freeze the profits from the $2.3 billion Myer float on November 11, 2009, failed. All but $45 of the $1.5 billion profit had been sent offshore days before the ATO moved.