THE media company News Corporation has been forced to pay the ACT government $77 million in taxes and penalties after an alleged tax avoidance scheme unravelled.

The Rupert Murdoch media empire paid the money late last year in a secret settlement, two years after being taken to court by ACT tax authorities who demanded $84 million in unpaid taxes, penalties and interest.

The money will allow the territory to present an almost balanced budget this financial year and is a victory by the nation's smallest financial jurisdiction over an international corporate giant which reported revenue of nearly $4 billion in 2009-10.

The company did not include the tax and penalty payment in its December quarter update.

A News Corporation spokesman said yesterday the case had been settled confidentially and declined to comment further.