Essar UK In Talks To Extend Tax Repayment Deadline

Essar Oil UK is in search of an extension of deadline to pay tens of millions of kilos in taxes

Essar Oil UK, the operator of Britain's Stanlow oil refinery, is in talks with United Kingdom (UK) authorities over extending a January deadline to repay a whole bunch of tens of millions of kilos in deferred taxes, the corporate stated on Sunday.

Essar Oil stated it nonetheless wanted to pay 223 million kilos ($305 million) to HM Revenue & Customs (HMRC) by January, confirming an earlier report within the Sunday Times newspaper which stated the corporate had used the federal government's pandemic VAT deferral scheme final 12 months.

Essar, in response to a Reuters request for remark, stated that it had already repaid HMRC 547 million kilos out of a complete 770 million kilos.

The firm had agreed an accelerated schedule with HMRC to make the remainder of the cost, which it has not been capable of meet because of a slower than anticipated restoration from the pandemic.

In a press release to Reuters, Essar stated it's in discussions with HMRC over a "short extension" to make the deferred VAT funds.

"Those discussions are positive and EOUK looks forward to a resolution soon," it added.

It additionally stated that the corporate had returned to constructive EBITDA (earnings earlier than curiosity, taxes, depreciation and amortisation) and due to this fact is in a "much stronger position to weather the continued challenge presented by the pandemic".

Essar in May secured greater than $850 million in financing for the Stanlow refinery after hitting short-term monetary difficulties.

Stanlow, which employs 900 individuals instantly and an extra 800 contractors on website, provides highway gasoline to northwest England, and jet gasoline to Manchester and Birmingham airports.

Lengthy queues of autos have been snaking their solution to fuel stations in Britain the place an acute scarcity of truck drivers has led to gasoline rationing in a lot of garages and a few pumps working dry, and prompted the federal government to think about issuing momentary work visas.