LONDON (Alliance News) - Shares fell in Augean PLC fell on Monday as it reported that it has been issued a final assessment and payment demand from HM Revenue & Customs for GBP10.1 million, including interest, for the period from August 2013 to August 2017.
Shares in the waste management business fell 11% at 46.17 pence on Monday.
The assessment is for subsidiary Augean North Ltd for the payment of landfill tax. HMRC also is considering whether penalties are appropriate.
In August 2017, Augean said HMRC issued an assessment to one of its subsidiaries for the three months ended August 2013, which the company claimed was issued in order to "protect HMRC against that period falling out of time" as a "four-year look-back applies for landfill tax".
Augean said the GBP10.1 million shouldn't be compared to the GBP45.1 million in tax assessments received from HMRC in April of this year, as that was for both Augean North and Augean South. Augean is yet to receive the final results of the assessment for Augean South.
"Whilst the group acknowledges the positive and welcome move to issue the final assessment for Augean North, we still believe that this assessment is without merit and maintain our position based on the legal advice received and independent reviews of our systems. The group will take all appropriate legal channels to challenge the assessment received and seek to mitigate payment of the tax until these legal appeals have concluded," Augean said in its statement Monday.
