7th Sep 2016 17:09
LONDON (Alliance News) - Tricor PLC late Wednesday said Her Majesty's Revenue and Customs have put in an application for GBP38,886 worth of legal costs to be recovered that were incurred during the appeal proceedings launched by the company earlier this year.
Tricor attended a hearing back in June to appeal against an earlier decision made by the Tax and Chancery Chamber to reject a VAT claim made by the company worth GBP1.8 million, plus any interests and costs.
The Tax and Chancery Chamber then rejected that appeal in August and Tricor asked for an extension whilst it mulled whether should seek permission to lodge a further appeal.
On the day it published its full year results to the end of March, when an impairment related to the claim contributed to the company's GBP2.2 million loss for the period, turning from a small profit, it said it would be potentially liable for costs incurred by HMRC for the appeal.
HRMC had already made an application to the tribunal for "unquantified" costs to be recovered, and the company booked a GBP100,000 provision as a result.
On Wednesday, Tricor said the legal bill has come in at GBP38,886, inclusive of VAT, and Tricor has now been invited by the tribunal to respond by September 20, and further separate costs could also be on the horizon.
"The company's position in respect of HMRC's previous application for costs of the first-tier tribunal proceedings is presently undetermined and the company is awaiting further advice on this," said Tricor.
Tricor reiterated the provision it has made and said it is "considering the implications of the decision with its lawyers and is awaiting further advice from them," the company said.
Tricor shares closed up 17% on Wednesday at 0.380 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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