FAR Limited faces potential tax claim from Senegal Tax Authority

FAR Limited (ASX:FAR) has received a notification of adjustments from the Senegal Tax Authority regarding a potential claim related to the sale of its interest in the RSSD Project to Woodside Energy (Senegal) BV in 2021. The notification includes a capital gains tax claim of approximately US$4 million, which FAR may need to indemnify Woodside for, as per the terms of the sale agreement. The unexpected nature of this claim contrasts with the previous exemption stamp from the Senegal Tax Authority in 2021. FAR intends to lodge an objection to the notification, but the resolution process is anticipated to be lengthy, leaving the potential liability uncertain at this stage.

Executive Commentary on Senegal Tax Authority Claim

The unexpected notification from the Senegal Tax Authority regarding the capital gains tax claim has raised uncertainties for FAR Limited. We are committed to addressing this matter through lodging an objection, but the resolution process is expected to be prolonged. We will keep our stakeholders informed as the situation develops.

Summary of Senegal Tax Authority Claim and Outlook

FAR Limited (ASX:FAR) has been notified of potential adjustments by the Senegal Tax Authority, including a US$4 million capital gains tax claim related to the sale of its interest in the RSSD Project. The company may be required to indemnify Woodside Energy for this amount as per the sale agreement terms. The unexpected nature of the claim contrasts with the previous exemption stamp from the Senegal Tax Authority in 2021. FAR intends to lodge an objection, but the resolution process is anticipated to be lengthy, leaving the potential liability uncertain. The company will continue to provide updates on the situation as it unfolds, aiming to address the matter effectively and keep stakeholders informed.