On January 7, 2022, the Company was informed that on December 23, 2021, the Company’s subsidiary, SBI International Holdings AG, which is wholly owned by the Company, was required to pay corporation tax and VAT in the amount of approximately $ 38 million for the years 2016-2020.
On January 6, 2022, the subsidiary was informed by a government client, who owed the company money by virtue of a ruling, that the Kenya Revenue Authority (Kenya Tax Authority) ordered him to deduct $ 32.6 million from the funds decided in favor of the subsidiary, and transfer them to Kenya Tax Authority. The said tax. The subsidiary examines the legality of the said offsetting notice, and in its opinion its legal implementation is in doubt. In addition, in the opinion of the subsidiary’s tax consultants and its external legal advisers, the said tax payment claims are unfounded and the subsidiary intends to appeal the entire amount.
In addition, and without detracting from the above with respect to the subsidiary’s intention to appeal the tax claim as a whole, the subsidiary has accumulated losses for tax purposes from previous years, which it estimates together with withholding tax accrued to the subsidiary, can be offset by $ 16.5 million (in tax terms ) Against the final assessments that will be waived, to the extent that they are waived, after the completion of the appeal proceedings that are to the credit of the subsidiary.