Sound Energy shares up as Moroccan authorities partly drop tax claim

(Alliance News) - Gas company Sound Energy PLC on Friday said the Moroccan General Tax ...

Alliance News 6 August, 2021 | 11:00AM
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(Alliance News) - Gas company Sound Energy PLC on Friday said the Moroccan General Tax Administration has re-assessed its claim against Sound Energy Morocco East Ltd.

Sound Energy shares were trading up 11% at 1.84 pence each in London on Friday after the main tax charge was dropped.

The exploration company said the authorities abandoned tax claims relating to the free acquisition of intangible assets between 2016 and 2018 after several Local Tax committee hearings.

The hearings found, as a claim had also been brought by the Moroccan Tax Administration against Sound Energy itself, taxing its subsidiary would be redundant.

However, the company noted that the committee has not dropped charges relating to the disposal of assets by its Moroccan subsidiary to Schlumberger in October 2018.

Sound Energy said the 2018 disposal related to a new petroleum agreement for exploration at the Greater Tendrara licence area in north-east Morocco.

The company said: "Sound Energy remains of the strong opinion that the remaining charges, including that against [Sound Energy Morocco East] in respect of entry of the new Greater Tendrara petroleum agreement, have been wrongly interpreted by the Moroccan Tax Administration. The company, together with its advisors, continues to seek to engage constructively with the authorities."

By Scarlett Butler; scarlettbutler@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Sound Energy PLC 0.89 GBX 1.08 -

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