(Alliance News) - Sound Energy PLC on Tuesday said it has received a notification from Morocco's tax authority about an audit and reassessment of the amount of tax it has paid in the country.
Shares in the African and European upstream gas company were 12% lower in London on Tuesday afternoon at 1.54 pence each after the announcement.
Sound said subsidiary Sound Energy Morocco East has received notification by the Moroccan General Tax Administration of a reassessment in respect of Moroccan taxes related to 2016 to 2018.
The position of the Moroccan tax authority was "entirely" refuted by Sound Energy, saying it is speaking to the government to seek a satisfactory conclusion to the matter. The local tax committee hearing is on Thursday, but the process can take 12 months, Sound added.
"Whilst I am satisfied that constructive dialogue is ongoing in relation to the original notification, I am exceptionally disappointed to have received the subsequent notifications from the Moroccan Tax Administration," said Executive Chair Graham Lyon.
"Since entering Morocco in 2015, Sound Energy and its partners have invested over USD140 million, with as yet no production revenue nor capital gain. This inward investment has not only created jobs, provided subsequent employment taxation and economic stimulus in Morocco but has heightened interest in what was hitherto an often-overlooked country for upstream investments."
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Sound Energy (SOU)