Sound Energy Faces $14 Million Tax Reassessment Over License Changes

The tax audit concerns the 2016, 2017 and 2018 fiscal years. For the gas explorer, the notification from the tax administration has assessed additional tax liabilities for corporate income tax and value-added tax totaling around $14 million due to license changes, reports Maroc Hebdo.

The license changes detailed in the notification concern the Tendrara Lakbir permit and the transfer of interests from Sound Energy Morocco SARL to Sound Energy Morocco East Limited. This assessment stems from a misunderstanding related to the license changes.

Thus, Sound Energy, which has 30 days from receipt of the notification to respond, will, with its advisors, approach the Moroccan tax administration in order to clarify this misunderstanding and seek to resolve it.