JKX wins court battle against USD 2.3 mln tax claim
22 October 2019
JKX Oil & Gas (JKX LN) reported on Oct. 22 an
appellate court had ruled in its favor in its defense against Ukrainian tax authorities’
claim of tax liability and penalties totaling USD 2.3 mln. The ruling upholds
the decision of the Poltava Circuit Administrative Court in favor of JKX,
rejecting the government’s argument and marking the second victory against the
2015 tax claims, the company reported.
Recall, JKX underpaid a total of USD 12.7 mln in taxes
in 2015, which lead to total tax and penalty claims against the company of USD
33.5 mln (as of end-1H19). This amount has been split into eight separate court
cases. The first case for a total claim of USD 0.3 mln finished in favor of JKX
in July 2019.
Alexander Paraschiy: This second ruling in favor of JKX raises the likelihood that the
company will be able to defend against all the other six claims related to the
2015 tax dispute. It, therefore, reduces future liquidity risks for JKX and
supports our bullish view on the stock.
