Africa Oil was appealing the corporate income tax and VAT assessments of the Kenya Revenue Authority.
An appeal of the decision
Africa Oil announces that Kenya ‘s Tax Appeal Tribunal is ruling in connection with transactions between 2012 and 2017. The court rules in favor of the company regarding the tax. However, he agrees with the administration regarding the VAT assessments. However, the company is filing an appeal with the High Court of Kenya to challenge this decision.
The High Court of Kenya recently rendered its decision. The appeal regarding the VAT assessment is partly favorable to Africa Oil. The VAT is now $18.7 million. On the other side of the case, the appeal procedure should not significantly impact the company’s cash flow.
A non-final dispute
Africa Oil is considering the legal implications of this decision. The company is a Canadian oil and gas company. It has deepwater production and development assets in Nigeria.
The company also has assets in Kenya. In addition, the company is listed on the Toronto Stock Exchange and Nasdaq in Stockholm.
