5 Dec 2018 16:05
5 December 2018
LEI: 213800AS2I1XUAGQ6F27
JKX Oil & Gas plc ("JKX")
Update on 2015 Poltava Rental Fee claims
As explained in the JKX 2017 consolidated financial statements, the Ukrainian tax authorities have claimed additional Rental Fees for 2015 and JKX has made a provision of US$ 25.8m as at 31 December 2017. The claim is being contested in eight separate cases with four of the claims currently suspended in the Supreme Court with the remaining four being heard by the Poltava Circuit Administrative Court ("the Court").
At the adjourned hearing of the Court held on 4 December 2018 in respect of Case 816/845/16, being the first of the four cases of the 2015 Poltava Petroleum Company ("PPC") Rental Fee Claims, the Court considered legal and tax expert evidence put forward by PPC, along with objections submitted by the Poltava Tax Authorities.
The Court found in favour of PPC and it ruled that Tax Notification Decisions previously issued against PPC were illegal and will be cancelled. This decision might be subject to appeal in the higher courts in Ukraine.
This case relates to additional tax liability and associated penalties of approximately UAH 9 m (US$ 0.3m).
For more information:
EM Communications +44 (0) 20 7002 7860
Stuart Leasor, Jeroen van de Crommenacker