VANCOUVER, BC, Dec. 2, 2022
/CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil
Corp. ("AOI", "Africa Oil" or "the Company") provides an update on
its appeal process in relation to Kenya Revenue Authority's
("KRA") corporate income tax ("CIT") and value added tax ("VAT")
assessments, made in connection with farmout transactions completed
during the period of 2012 to 2017. View PDF Version
On April 8, 2020, Africa Oil
announced that Kenya Tax Appeals Tribunal ("TAT") had ruled on the
Company's appeal related to KRA's CIT and VAT assessments, made in
connection with farmout transactions completed during the period of
2012 to 2017. TAT ruled in favour of the Company with regards to
the CIT assessments and in favour of KRA with regards to the VAT
assessments. Subsequently, Africa Oil filed an appeal with the High
Court of Kenya to challenge the
VAT decision and KRA filed an appeal in relation to the CIT
decision.
On 30 November 2022, the High
Court of Kenya announced its
decisions on the Company's Tax Appeal Case Number 024 (consolidated
with KRA's Tax Appeal Case Number 051), and the judgment was made
available to the Company yesterday. The Company's appeal with
regard to the VAT assessment was partly successful and the High
Court concluded that the Company owes VAT in an amount of Kenyan
Shillings 2,293,334,065
(approximately US$ 18.7 million). The
KRA's appeal with regard to the CIT decision was partly successful
and the High Court concluded that the KRA was correct to disallow
certain costs claimed by the Company; however, the High Court's
decision on the KRA's appeal with regards to CIT is not expected to
have a material cashflow impact to the Company.
Africa Oil is taking legal advice on the options available to it
in view of this decision, including the option to appeal.
About Africa Oil
Africa Oil Corp. is a Canadian oil and gas company with
producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio
in Africa and Guyana. The Company is listed on the Toronto
Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
This information is information that Africa Oil Corp. is obliged
to make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out below on December
2, 2022 at 5:30 p.m.ET.
Forward Looking Information
Certain statements and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation), including the Company's
assessment of the impact of the CIT decision on its future cashflow
and the availability of the right to appeal the CIT decision. Such
statements and information (together, "forward looking statements")
relate to future events or the Company's future performance,
business prospects or opportunities.
All statements other than statements of historical fact may be
forward-looking statements. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"seek", "anticipate", "plan", "continue", "estimate", "expect,
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar
expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve
known and unknown risks, ongoing uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. Actual results may differ materially from those
expressed or implied by such forward-looking statements.
SOURCE Africa Oil Corp.