02 Dec Victoria Oil & Gas challenges $5.6m tax notice from Cameroon tax authorities
In Cameroon, VOG rejects a tax notice valued at $ 5.6 million, over the period 2014-2016. The British company believes that its Gaz du Cameroun subsidiary has no debt to the Cameroonian tax authorities and would therefore suffer double taxation.
In its activity report for the first half of 2020, Victoria Oil & Gas (VOG), the British company, reveals that its Cameroonian subsidiary Gaz du Cameroun (GDC) has received a tax notice for the period 2014 to 2016 from an amount of USD 6.6 million (FCFA 3.61 billion) on May 22, 2020, which was revised to USD 5.6 million (FCFA 3.06 billion) on August 10, 2020, following an initial appeal by GDC.
“ The management [of GDC, Editor’s note] maintains that it has paid all the taxes owed to Cameroon and considers that the opinion of the tax administration is erroneous, because it seeks to subject GDC to double taxation. Therefore, GDC intends to vigorously challenge this assessment, ”writes VOG.
The multinational adds: “ At the date of approval of the interim financial statements, the results of the various submissions that GDC has filed with the relevant regulatory bodies are unknown and it is therefore not possible to quantify the potential impact. An unfavorable outcome will have a significant impact on the Group’s results and position ”.
At the same time, indicates the company, as of June 30, 2020, the balance owed by the electrician Eneo, Cameroonian subsidiary of Actis, was 16.3 million USD (9.8 million USD net to GDC). GDC’s reminders haven’t changed much. Due to this situation, GDC served notice of default on Eneo in accordance with the binding condition sheet signed on June 2, 2020, which included a 30 day repair period. The debt has still not been settled, because contested by Eneo.