Sound loses Moroccan tax case
Sound Energy said on July 13 it had lost a case at a Moroccan court over claims it owes $2.55mn in taxes relating to its takeover of assets from Schlumberger last year.
The Moroccan tribunal has informed Sound that it rejected the company's demand for the claim to be annulled. Sound said it continues to believe that the claim results from an incorrect interpretation by Moroccan tax authorities of the petroleum agreement governing the Greater Tendrara project.
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Once the tribunal's reasons for the decision are available, Sound will decide what further steps to take, including but not limited to lodging an appeal.
"We are both surprised and disappointed with this ruling. Clearly, this is not what was expected and reflects poorly on the application and understanding of the applicable legislative code in Morocco," Sound chairman Graham Lyon said in a statement. "We will both appeal to the Moroccan higher courts and reflect on the ruling with the various Moroccan ministries given its impact for new entrants into Morocco."