Telefónica must pay 790 million to the Supreme Courts of Peru after a sentence against its subsidiary in this country, which is accused of not responding with solvency to income tax for the years 2000-2001. In this way, the company will have to face the charges related to this contentious-administrative process.
Telefónica del Perú has received a ruling from the Fifth Chamber of Transitory Constitutional and Social Law of the Supreme Court, which resolves this contentious process on income tax “in the last instance and unfavorably” to the company, according to a publication in a relevant event the Peruvian regulatory body.
The relevant fact does not specify the economic amount of the sentence, although it indicates that the operator had made the corresponding provision. Therefore, Telefónica, in the results of the third quarter of 2022, presented in November, added a provision of 790 million euros in Peru for the litigation related to the taxes of 2000 and 2001.
Last week, the Telefónica subsidiary in Peru announced that it had presented a new provision of 630.6 million soles (155 million euros) that is related to the contentious-administrative processes related to income tax for the corresponding years since 1998 and 2004.
According to El Confidencial published this Tuesday, Telefónica’s tax battle in Peru due to litigation that began in 2007 for corporate tax since 1998, would mean that it would have to pay 916 million euros immediately. Sources from the operator have confirmed to EFE an appeal by Telefónica for this ruling before the International Center for Settlement of Investment Disputes (ICSID), and that it sees itself with options to win it.