Business
Update re Notice from Moroccan Tax Authorities
Update re Notice from Moroccan Tax Authorities.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3847A\n Sound Energy PLC\n 01 June 2021\n \n \n \n \n \n \n \n 1 June 2021\n \n \n \n \n \n Sound Energy plc \n \n \n (\"Sound Energy\" or the \"Company\")\n \n \n \n \n \n \n \n \n Update re Moroccan Tax Administration Notification\n \n \n \n \n \n Sound Energy, the Moroccan focused upstream gas company, provides an update further to its announcement of 3 September 2020 that the Moroccan branch of its wholly-owned subsidiary, Sound Energy Morocco East Limited (\"SEMEL\") had received a written notification by the Moroccan General Tax Administration (the \"Moroccan Tax Administration\") of a re-assessment in respect of Moroccan taxes pursuant to a tax audit undertaken on SEMEL by the Moroccan Tax Administration during 2020 and related to the fiscal period 2016 to 2018 (the \"Notification\"). The Company also announces the receipt of an additional, but related, notification from the Moroccan Tax Administration (the \"Additional Notification\").\n \n \n \n \n \n The Company entirely refutes the Moroccan Tax Authority's position and having taken detailed specialist taxation and legal advice, is also liaising with Moroccan governmental authorities to seek a satisfactory conclusion of the matter, whilst the formal process related to Notification continues, with the next stage being the first local tax committee (the \"LTC\" ) hearing on 3 June 2021 in which SEMEL and the Moroccan Tax Administration will present their respective positions (pursuant the Notification) to the LTC. The LTC process can take up to 12 months. Thereafter, the matter may proceed to national committee stage, if not concluded, thereafter for arbitration. Regarding the Additional Notification, the Company will formally write to the Moroccan Tax Administration to formally refute the assessment and the basis thereof.\n \n \n \n \n \n Notification\n \n \n \n \n \n In the Notification, the Moroccan Tax Administration suggested (as announced by the Company on 3 September 2020) that it had assessed additional corporate and value-added tax SEMEL liabilities in sharing its intention to examine:\n \n \n \n \n \n 1. The relinquishment, in 2017, by Sound Energy Morocco SARL AU (\"SARL AU\") of its operatorship and its 37.5% stake in the Tendrara-Lakhbir Petroleum Agreement. SARL AU is a who...