EDP faces €1.4bn in tax disputes across several countries
EDP faces €1.4 billion in tax contingencies in countries including Portugal, Brazil and the US, highlighting potential financial and legal exposure for one of Portugal’s biggest companies.
EDP is facing €1.4 billion in tax contingencies across several countries, including Portugal, Brazil and the United States, in a sign of the legal and financial exposure facing one of Portugal’s largest listed companies. One of the biggest cases involves €335.2 million linked to the 2020 sale of the operating concession for six dams to Movhera, owned by Engie.
The power utility confirmed it received, at the end of April, an inspection report from Portugal’s Tax and Customs Authority on the sale of a dams portfolio. According to EDP, the report proposes tax adjustments in corporate income tax and stamp duty.
EDP rejects the tax authority’s interpretation and says it will not pay the assessments until there is a court decision. The company had reported a profit of €732 million in the first half of the year.
The Movimento Cultural da Terra de Miranda, a civic group, argues that EDP’s stance is a way to gain time, saying it suspects the alleged tax debt is two months away from expiring.
Originally published at Eco.pt
