Banks are starting to settle with Inland Revenue Department in New Zealand over taxes payable on structured finance transactions that became a staple of institutional banking teams for six years from 1999.Deutsche Bank settled with Inland Revenue last week the Herald on Sunday reported.The general disclosure statement of Deutsche Bank's New Zealand branch for the June 2007 quarter shows the IRD claimed NZ$43 million in unpaid tax and NZ$32 million in interest, and with no estimate for possible penalties.The Herald on Sunday cites court estimates, based on disclosure documents of all banks, that put the tax payable by banks in New Zealand at NZ$1.7 billion before interest and penalties.Banks ceased undertaking the contested structured finance transactions in 2005 as the IRD starting hitting the sector with tax assessements. New Zealand's parliament also enacted a new law to close off any loophole.Most banks contend they received clearance on the tax structure in 1999 and based later transactions on those early rulings.