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      SMN POWER HOLDING

       Update on the ongoing dispute with the Tax Department regarding the application of the finance lease principle

      Apr 05, 2018 08:31 AM

      SMN Power Holding SAOG

      Company Disclosure – Update on the ongoing dispute with the Tax Department regarding the application of the finance lease principle.

      In compliance with the Rules and Guidelines of Disclosure, SMN Power Holding SAOG (‘The Company’) would like to inform the Muscat Securities Market and the Investors’ Community about the latest development regarding the income tax case of its subsidiary Al Rusail Power Company SAOC.

       

      The Primary Court in Muscat, in its judgment dated 4th April 2018, has rejected Al Rusail’s appeal related to the finance lease model application for the tax years 2008 and 2009 which had been rejected by the Tax Authorities.  The Company will analyse the written judgment together with its legal and tax advisors and will take appropriate action as directed by the Board of Directors.

       

      The Company would like to mention that the non-application of the finance lease model for the tax years 2008 and 2009 would not result in any additional tax payment as Al Rusail would be in a tax loss position according to the Tax Department’s assessment in these two years.

       

      Furthermore, the Company will review with its tax advisors and external auditors the implication of this decision on the subsequent years and the related deferred tax accounting treatment.

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