I-T claims absurd, we don’t evade tax: Shell
“To service the downstream business, we needed an equity injection in 2008 of $160 million. We have now received a tax request of $1 billion on this equity injection of $160 million. Somebody needs to explain this because I do not understand,” she said.
“The valuation of shares was undertaken by a certified independent valuer who assessed the value (in line with the foreign investment and exchange control laws) to be below R10 per share and the issue was made at R10 per share. The transfer pricing order has valued these at R183 per share even though there are no provisions under the income tax law for such revaluation,” the company had said in its earlier statement.
The company which has 70 fuel stations across the country, besides a major presence in the downstream business has not been able to make profits due to administered government pricing of retail fuel products. “We want a level playing field where the prices of fuel should be market-linked with no subsidies,” Hilton added.
The company wants to enter exploration (the upstream side of the business) and is looking for the right asset to have its material presence in the segment in the next five years.
“Lets have a robust investor-friendly framework. Do not create waves of fear among your investors by unreasonable tax demands or unreasonable statements. What signal
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