A Calgary-based oil and gas producer that operates in eastern Europeemerged victorious in a long-standing dispute with the Albanian government over a $57-million tax bill.
The dispute began with an Albanian government audit of Bankers Petroleum Ltd.’s books in 2011 thatquestioned $250 millionin expenses, resulting in a $57-million tax levy.
At one point, the country’stax department frozeBankers’Albanian bank accounts, which it used to pay local suppliers, as part of efforts to collect the tax along with interest andpenalties that pushed the total to $75 million.
The feuding parties ultimately agreed tohave the expense and resulting taxreviewedby a third-party panel of auditors. Bankers said Monday the panel found the companyhad correctly recordedits 2011 expenses and was not required to pay the disputed tax.
The decision is binding, which means the Albanian government must abide by it, Bankers said. The Albanian government is expected to determine some mechanism to reimburse the company for the funds it has paid on the tax so far.As of June 30, Bankers had paid $37 million as a deposit.
Chinese oil and gas companyGeo-Jade Petroleum Corp. is seeking approvals to acquire Bankers for an estimated $575 million. The proposed transaction is being reviewed by Chinese authorities.
