A Calgary-based oil and gas producer that operates in eastern
Europeemerged victorious in a long-standing dispute with the Albanian
government over a $57-million tax bill.
The dispute began with an Albanian government audit of Bankers
Petroleum Ltd.’s books in 2011 thatquestioned $250 millionin expenses,
resulting in a $57-million tax levy.
At one point, the country’stax department frozeBankers’Albanian
bank accounts, which it used to pay local suppliers, as part of efforts
to collect the tax along with interest andpenalties that pushed the
total to $75 million.
The feuding parties ultimately agreed tohave the expense and
resulting taxreviewedby a third-party panel of auditors. Bankers said
Monday the panel found the companyhad correctly recordedits 2011
expenses and was not required to pay the disputed tax.
The decision is binding, which means the Albanian government must
abide by it, Bankers said. The Albanian government is expected to
determine some mechanism to reimburse the company for the funds it has
paid on the tax so far.As of June 30, Bankers had paid $37 million as a
deposit.
Chinese
oil and gas companyGeo-Jade Petroleum Corp. is seeking approvals to
acquire Bankers for an estimated $575 million. The proposed transaction
is being reviewed by Chinese authorities.
(Calgary Herald
)