Court rules in Energean's favour in Greek tax dispute

Oil and gas exploration and production company Energean Oil and Gas announced on Monday that the Athens Administrative Court of Appeal has ruled in its favour in its final decision on the appeal against certain tax and transfer pricing penalties.

The FTSE 250 firm said that, although the decision was considered to be final and binding, the tax authorities retained the right to submit an appeal before the Council of State.

In its 2017 annual report, Energean recorded a provision of $6.9m for the tax and transfer pricing penalties relating to fiscal years 2006-2011, which were the subject of the appeal.

“Following receipt of the final decision this provision can be reversed,” the board said on Monday.

“During 2015, Energean had been required to make a mandatory prepayment of 50% of the total exposure, €3.2m, to the Greek tax authorities.

“Following the final decision, Energean will proceed in recovering this amount.”