Farrol wins a tax lawsuit and reduces potential tax odds
Pharol has been notified by the IRS of an amendment related to fiscal year 2006 that results in a reduction in potential tax liabilities and tax contingencies.
Duarte Rorez
Farol won a lawsuit with the tax authorities and saw potential emergency tax reductions. The calculation relates to the fiscal year 2006 – when it was Still branded as Portugal Telecom – It involves a reduction of 147 million euros in the potential liability of the company led by Luis Balha da Silva, informed To Pharol this Thursday.
The notification was issued by the tax authorities with a Memorandum of Settlement and Statement of Settlement of Accounts “in pursuance of a decision rendered in a judicial appeal process, with a positive outcome for Pharol’s claim,” the company points out.
“In the process, Pharol’s potential tax liability has been substantially reduced from €170 million on April 30, 2023, to €22 million as of today, which represents a decrease of €147 million,” the statement says. In this way, he adds, “the value of Farol’s potential tax risk decreases” from about €390m at the end of last year to approximately €241m on May 11, 2023, i.e. 149m, taking into account the potential interest of default. in lawsuits.
In any case, the payment of obligations arising from the tax emergency until May 5, 2014 is up to Oi, Pharol revealed in the report and accounts for 2022.
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