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Augean Plc - Augean South Limited Assessment Notification

This content has been sourced from: https://www.investegate.co.uk/augean-plc--aug-/rns...

Augean plc

("Augean" or "the Group")

Augean South Limited Assessment Notification

As an anticipated element of Augean's ongoing dispute with HMRC, a landfill tax assessment, which has already been provided for, has been issued by HMRC to Augean. The assessment is for Augean South Limited for the final period from June 2018 to May 2019, for a total quantum of £1.5m (£1.6m including interest) (the "Assessment").

Practices within the Group were changed in May 2019, to prevent further potential assessments, despite the Group's continuing view that HMRC's assessments were incorrect.

This Assessment had been provided within the Group's final results for the year ended 31 December 2020.  There will therefore be no impact on guidance going forward or on the Group's profit as a result of the receipt of the Assessment.  The Assessment will be paid forthwith in order to prevent further accrual of interest.

The Group will appeal this Assessment at the forthcoming tax tribunal. The Group continues to believe, based on legal advice, that it has paid the correct amount of landfill tax and that HMRC's assessments are incorrect.  HMRC continues to consider whether penalties may be appropriate and there may be other final assessments for other time periods for Augean North Limited.