Irish Gas Company Faces £36 Million UK Tax Charge
It has been revealed that
Bord Gais, which owns the gas interconnector across the Irish Sea which imports
some 70% of the country's gas, is facing a £36 million unpaid tax bill
from the UK Inland Revenue. The IR is claiming that
the company's UK subsidiary was not entitled to claim certain capital allowances
on the construction cost of the line, and although a Bord Gais spokesman said
last week that the company is confident of a favourable outcome, resolution
of the claim, which has just started to make its way through the courts, could
take some time. According to reports, Bord
Gais is looking to build a second interconnector, as the first (IC1) is working
at almost full capacity. In order to do this, however, the company may be forced
to sell a share in IC1, a transaction which would undoubtedly be complicated
by the existence of the sizeable tax liability. As a result, there is speculation
that despite its confidence, the Irish gas supplier may end by settling the
claim out of court. .
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