Cobham agrees to pay ?69m to settle long-running tax dispute
By Abigail Townsend
Date: Wednesday 15 May 2019
(Sharecast News) - Cobham's long-running dispute with HM Revenue & Customs has been settled, the defence and aerospace specialist announced on Wednesday.
Under a deal struck with the tax authorities, Cobham will pay a one-off net tax payment of £55m in the first half of the current year, along with a one-off interest payment of £14m.
The payments will "finally settle the group's exposure to this matter", the FTSE 250 firm said, noting that "the settlement is within the amounts previous provided by Cobham for tax".
Cobham's dispute with HMRC centred around the availability of interest deductions on one of its internal financing structures, which was in place between 2008 and 2014.
Separately, Cobham also provided an update on the European Commission's ruling last month that the UK's controlled foreign company regime partially represented state aid.
It said: "The UK government has not yet announced how it would identify and see to recover state aid; Cobham estimates is could have an additional tax payable of between nil and approximately £60m."
Shares in Cobham were trading 1% higher at 114.45p by 1000 BST.
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