Augean Plc HMRC Update (5358J)
April 03 2018 - 2:01AM
UK Regulatory
TIDMAUG
RNS Number : 5358J
Augean Plc
03 April 2018
3 April 2018
Augean plc ("Augean" or the "Company")
HMRC update
Augean, one of the UK's leading specialist waste management
businesses has, as expected, been issued with pre-assessment
notifications from HMRC for Augean North Ltd and Augean South Ltd.
HMRC has indicated that it intends to issue assessments for a total
amount of GBP37.6 million covering the period from August 2013 to
August 2017 in respect of Augean South Ltd and from October 2013 to
July 2017 in respect of Augean North Ltd. HMRC has also notified
the companies that it is considering issuing a reduction in the
value of the previous five assessments received, from the GBP12.0m
notified with our Preliminary Results to GBP7.5 million.
The receipt of the pre-assessment notifications was not
unforeseen and we remain in cooperative discussion with HMRC. The
Group believes from its legal advice and independent reviews of our
systems that landfill tax has been collected and paid correctly. We
are pleased that HMRC has recognised the majority of exemption
status we had applied and as a result has significantly reduced the
potential assessment value accordingly. The Group takes this as a
positive and welcome initial development. We are also pleased that
HMRC is responding to our situation in a timely manner and faster
than we had indicated with our Preliminary Results. We continue to
defend our position that the appropriate landfill tax has been
paid.
The letters include HMRC's standard wording that it intends to
apply interest and will consider penalties. Augean has been invited
to put forward further information for HMRC to consider prior to
issuing any further or amended assessment and will continue a
cooperative dialogue with HMRC.
Having taken advice from leading counsel and its solicitors,
Augean continues to believe that both the previous assessments and
these pre-assessment notifications are without merit. The Group
will robustly challenge these and any further landfill tax
assessments that it may receive from HMRC, through the tax tribunal
system if necessary. Based on advice received, the Group has not
provided for the assessments in its accounts nor does it expect to
pay the assessments levied to date. The advice received by Augean
is that it will not be required to pay the assessments for at least
12 months.
Further announcements will be made at the appropriate time.
- Ends -
Enquiries:
Augean plc
Jim Meredith, Executive
Chairman
Mark Fryer, Group Finance
Director 01937 844 980
N+1 Singer
Shaun Dobson
Alex Price 020 7496 3000
FTI Consulting
George Parker
Fiona Walker 020 3727 1535
This information is provided by RNS
The company news service from the London Stock Exchange
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