Authorities levy $230 million tax bill against ICL
Israel Chemicals (ICL) has been slapped with a $230 million tax bill for the years 2009-2011. Israel’s Tax Authority said that it is demanding additional tax payments for the three years because two ICL subsidiaries – Dead Sea Works and Rotem Amfert – were not eligible for certain tax breaks under the Investment Encouragement Law that was amended in 2005.
ICL said in response that it disagrees with the tax bill and that it has a legal opinion from experts that backs its position. The news sent shares in ICL down sharply on the Tel Aviv Stock Exchange.
In March 2011 Israel’s Finance Ministry sued Dead Sea Works for $291 million plus interest for back payment of royalties from the company from the production of potash at the Dead Sea. The royalties are from production for the years 2000-2009. ICL disagrees with the Finance Ministry and the matter is currently in the final stages of arbitration.