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LONDON (Alliance News) - Oriole Resources PLC confirmed on Thursday it expects to get GBP500,000 from the UK tax authority following the resolution of a tax dispute.
In 2017, HMRC ruled that Oriole'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 VAT reclaimed in the UK since 2011.
This led to a provision of GBP557,000 in Oriole's 2017 financial statements and a payment to HMRC of GBP593,000 in June 2018.
Then, Oriole in November 2018 said it had reached agreement with HMRC, and now expects to received back "in the region" of GBP500,000.
"Reaching agreement with HMRC on our VAT status is excellent news as it removes a significant area of uncertainty around our operations, and brings a substantial amount of cash back to us. It has been a long process to reach this agreement and a significant and costly distraction that we can now put behind us, concentrating fully on our exciting exploration operations," said Chief Financial Officer Bob Smeeton.
The repayment is expected during the first quarter of 2019, and the funds will enable the company to progress its gold exploration programme in Cameroon as well as pursue other opportunities it is reviewing in Africa and Europe.
Oriole shares were up 3.8% at 0.462 pence on Thursday.
