SQM gives update – Alert
Chile’s SQM said March 25 that it has supplied the country’s tax authorities information pertaining to US$11 million in payments that originated from the office of SQM’s former CEO Patricio Contesse during the six year period from 2009-2014 that may not meet the requirements to be qualified as tax expenses under the Chilean tax code because of insufficient supporting documentation.
SQM said going forward it may be subject to 35 percent taxes on payments that did not qualify as tax expenses, as well as interest and penalties.
In the meantime, SQM has decided to hold a shareholder meeting April 24, 2015. At that meeting, an election for the entire board will take place. In the meantime, the board will continue to function with its five members, which does form a quorum. Potash Corp. of Saskatchewan Inc.’s three members resigned March 17.
In addition to tax and political contribution investigations in Chile, SQM acknowledges that in the U.S., a class action lawsuit is being established based on allegations that the company failed to make certain disclosures about these issues.