Romania: Alpiq could face 175 million euros tax penalty

, SEE Energy News

Swiss energy company Alpiq announced that after completing tax audit of its Romanian subsidiary Alpiq Energy SE, the national tax authority ANAF has preliminary assessed an amount of 175 million euros in VAT, corporate income tax and penalties for the period from 2010 to 2014.

A possible respective final decision by ANAF will be challenged by Alpiq making use of all available local and international legal means of redress. The draft document is currently under detailed analysis by both legal and tax consultants in order to prepare the Alpiq defense and assess the Alpiq position. The total tax assessment amounts to 175 million euros, which is denied on the merits and to the extent of the amount assessed by the Romanian tax authorities.

The draft decision is not enforceable and Alpiq will now submit its arguments against the assessment by ANAF and have discussions with tax inspectors on the merits of the case. A final decision may be issued once Alpiq has been given this right of defense against the position of ANAF. The company is firmly convinced that the activities of Alpiq Energy SE in Romania have always been carried out in accordance with the applicable Romanian and EU rules and regulations.

Alpiq Energy SE will continue to remain active on the Central, Eastern and Southeastern European energy markets. Alpiq Energy SE is headquartered in Prague in the Czech Republic, and is a subsidiary of the Alpiq Group. Its core business is energy trading and marketing of energy management services.