Sevan Marine, a Norwegian company designing offshore oil and gas platforms, will get back the cash it paid as part of a tax assessment dispute with the Norwegian tax authorities.
Sevan Marine said it had in January received a decision from Skatt Sør (Norwegian tax authorities) that the tax assessment for 2012 was adjusted for certain deductions related to losses on intra-group receivables following the sale of FPSO Hummingbird during the 2011-2012 restructuring.
Sevan Marine accrued for the full amount of the potential additional tax, interest and penalty tax in December 2015 of NOK 40.9 million.
The additional tax and interest of NOK 31.7 million was paid in February 2016. Sevan Marine disputed the tax office’s assessment.
However, Sevan said on Wednesday that the tax office “has now informed Sevan Marine that they will reverse their decision and no longer pursue the adjustment of the 2012 tax assessment. In accordance with this decision, Sevan Marine will be paid back the NOK 31.7 million paid in February 2016 plus interest.”
The remaining accrual in the accounts of NOK 9.2 million for penalty tax will also be reversed in Q2 2017.
Sevan Marine said it would further pursue the reimbursement of expenses incurred in disputing this case.
“We are very pleased that the tax authorities have agreed to no longer pursue this matter. This decision will lead to a positive NOK 40.9 million accounting gain and a cash reimbursement of over NOK 31.7 million,” said Reese McNeel, CEO of Sevan Marine ASA.