Dubai Re­fresh­ment wins court case over tax is­sue

Khaleej Times - - BUSINESS - Wa­heed Ab­bas — wa­heed­ab­bas@khalee­j­times.com

DUBAI — Dubai Re­fresh­ment Co (DRC)., the dis­trib­u­tor of Pep­siCo prod­ucts, has said the First In­stance Fed­eral Court of Abu Dhabi has ruled in its favour re­lated to the tax assess­ment and penal­ties case ap­plied by the Fed­eral Tax Author­ity.

In a state­ment on Mon­day, it said the court re­jected the case and obliged the plain­tiff to pay the ex­penses and waive the fees.

It said the court can­celled the ob­jected de­ci­sion and ruled again to can­cel all ad­min­is­tra­tive penal­ties. All other re­quests were re­jected by the court who obliged the author­ity to pay the fees and ex­penses, DRC said in a state­ment posted on Dubai Fi­nan­cial Mar­ket, where it is listed.

Ear­lier, the Tax Dis­pute Set­tle­ment Com­mit­tee in Dubai had also ruled in favour of the com­pany.

Ear­lier, the FTA had con­tended the DRC owed it Dh20.8 mil­lion on the stock of drinks held by the com­pany in 2017, prior to the in­tro­duc­tion of VAT, which came into ef­fect from Jan­uary 1, 2018. The Com­mit­tee had ruled that the com­pany owed only Dh8.8 mil­lion in taxes to the Author­ity.

Dubai Re­fresh­ment posted Dh18.65 mil­lion net profit for the first half of 2020 as com­pared to Dh30.88 mil­lion for the same pe­riod last year, a loss of 39.6 per cent. While the sec­ond-quar­ter profit shrank 83 per cent from Dh18.68 mil­lion to Dh3.13 mil­lion due to the im­pact of coro­n­avirus.

Dur­ing the an­nual gen­eral meet­ing held on March 23, 2020, DRC share­hold­ers ap­proved and paid a cash div­i­dend of Dh0.70 per share, to­tal­ing Dh63 mil­lion.

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