Essar Oil in talks to extend UK VAT payment deadline in January By Reuters


© Reuters. FILE PHOTO: The Essar Group logo is seen at its headquarters in Mumbai, India, August 21, 2017. REUTERS / Danish Siddiqui

(Reuters) – Essar Oil UK, the operator of Britain’s Stanlow oil refinery, is in talks with UK authorities to extend a January deadline to reimburse hundreds of millions of pounds in deferred taxes, the company said on Sunday .

Essar Oil said it still had to pay HM Revenue & Customs (HMRC) 223 million pounds ($ 305 million) by January, confirming an earlier Sunday Times report https: // which said the company had used the government’s pandemic VAT carry-over. diet last year.

Essar, responding to a request for comment from Reuters, said it had already reimbursed HMRC £ 547million out of a total of £ 770million.

The company had agreed to an expedited schedule with HMRC to make the rest of the payment, which it was unable to meet due to a slower-than-expected recovery from the pandemic.

In a statement to Reuters, Essar said it was in talks with HMRC about a “short extension” to make the deferred VAT payments.

“These discussions are positive and EOUK looks forward to a resolution soon,” he added.

He also said the company has returned to positive EBITDA (earnings before interest, taxes, depreciation and amortization) and is therefore in a “much stronger position to overcome the continuing challenge presented by the pandemic”.

Essar secured over $ 850 million in funding in May for the refinery of Stanlow after being in short-term financial difficulty.

Stanlow, which directly employs 900 people and an additional 800 subcontractors on site, supplies road fuel to the North West of England and jet fuel to Manchester and Birmingham airports.

Long lines of vehicles make their way to the stations- service in Britain, where a severe shortage of truckers has resulted in fuel rationing at a number of garages and some dry pumps, and prompted the government to consider issuing temporary work visas.

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