As briefly mentioned in the first quarter 2018 report, during the latest routine tax audit performed at the level of RomReal Romanian subsidiary Westhouse Group, covering the period 1 January 2011 - 31 December 2016, the tax authorities reassessed the loans granted by RomReal Ltd. to Westhouse Group as contribution to share capital instead of inter-company loans. In this respect, the Company received the tax audit report ("Tax Report") and the corresponding tax assessment decision ("Tax Decision"), whereby the tax authorities imposed an extraordinary tax-bill on the Company, in excess of EUR 1.7m (including penalties), as profit tax for the period covered by the tax audit.
Westhouse Group has retained the services of E&Y Romania and pursued all available legal means for challenging the effects of such reassessment, in order to cancel the additional tax liabilities. In addition, the Company has proceeded with a legal request to Romanian competent Courts, asking the suspension of the Tax decision, pending the result of the contestation. On 18th July 2018, Constanta Court of Appeal ordered that no attachments to the bank accounts and/or lands belonging to Westhouse Group should take place pending the resolution of the case in front of the Court of Appeal.
For further information please contact:
Harris Palaondas
Investor Relations
investors@romreal.com