Business
Significant Progress made on VAT Appeal
Significant Progress made on VAT Appeal.
About this update from Oriole Resources Plc
[{"type":"text","content":"\n \nRNS Number : 1140H Oriole Resources PLC 13 November 2018 \n\nOriole Resources PLC \n('Oriole Resources' or 'the Company' or 'the Group')\n \nSignificant Progress made on VAT Appeal\n \nOriole Resources, the AIM-quoted exploration company operating in Africa and Europe, is pleased to provide a positive update on its appeal against Her Majesty's Revenue and Customs ('HMRC'), after it was asked to pay-back £557k in reclaimed VAT last year (Announcement dated 27 February 2018). \n \nHighlights\n- HMRC has now accepted the Group's activities in supporting its overseas exploration are an economic activity for VAT purposes;\n- The £557k provision made in the 2017 financial statements is expected to be substantially released although a partial restriction will apply going forward in respect of the Group's activity in Turkey;\n- The quantum of the partial restriction is subject to ongoing discussions.\n \n \nOriole's CFO Bob Smeeton, said: \"We are pleased to have reached agreement with HMRC that the Group's activities to support overseas exploration are an economic activity for VAT purposes. Whilst there are still ongoing discussions concerning the restriction relating to our Turkish activities, it is excellent news as a significant proportion of the 2017 provision is expected to be available for release in 2018.\" \n \nFurther Information\nAs reported in the Company's 2017 Financial Statements, HMRC had ruled that the Group's activities of supporting its overseas exploration operations could not be classed as an economic activity for VAT purposes and subsequently demanded that the Company pay-back the VAT reclaimed in the UK from 2011. This led to a provision of £557k in the 2017 Financial Statements. However, the Directors appealed this decision and discussions with HMRC throughout 2018 have reversed this decision. \nHMRC has now accepted that our activities are an economic activity for VAT purposes although HRMC has advised that a partial restriction to our activities in Turkey will apply. The quantum of that partial restriction is the subject of ongoing discussions between HMRC and the Company's advisor, BDO UK LLP, and consequently the scale of the release of the £557k provision made in the 2017 fi...