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Monday, November 27, 2023
FAR Limited advises that a notification of adjustments has been received with respect to a potential claim from the Senegal Tax Authority relating to the sale by the FAR group of its interest in the RSSD Project to Woodside Energy (Senegal) BV in 2021. The notification was sent to Woodside, as the current owner of the interest in the project, which has passed on a copy to FAR.
The notification of adjustments includes a capital gains tax claim of approximately $4 million relating to the FAR sale. If any part of the capital gains tax claim is ultimately payable by Woodside, FAR considers it likely that it would be called on to and would need to indemnify Woodside for that amount, as a consequence of the terms of sale agreed between FAR and Woodside.
The notification from the Senegal Tax Authority is unexpected. In 2021, the Senegal Tax Authority considered the sale agreement between FAR and Woodside, and the Senegal Tax Authority stamped the sale agreement as being exempt from tax and duty.
An objection to the notification from the Senegal Tax Authority is intended to be lodged. The process for dealing with the notification and the ultimate resolution of this is expected to take some time. Pending the ultimate resolution of this, the potential liability of FAR in relation to the capital gains tax claim should be regarded as uncertain
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