15 May 2019
Legal Entity Identifier: 213800A41R9NL49E5632
Settlement of Tax Dispute
Cobham plc ('Cobham' or 'the Group') announces that it has reached an agreement with the UK tax authorities in respect of a significant, previously disclosed and long running dispute. This is in connection with the availability of interest deductions on one of the Group's internal financing structures, which was in place between 2008 and 2014. In the first half of 2019 Cobham will make a one-off net tax payment of £55m, together with a one-off interest payment of £14m, to finally settle the Group's exposure to this matter. This settlement is within the amounts previously provided by Cobham for tax.
Unrelated to this, and as disclosed in note 6 (Tax) of its 2018 Preliminary Results announcement, the Group continues to monitor developments relating to EC State Aid investigations. In April 2019, the EC's final decision on the UK Government's Controlled Foreign Company regime was that it partially represents State Aid. The UK Government has not yet announced how it would identify and seek to recover State Aid; Cobham estimates it could have additional tax payable of between £nil and approximately £60m.
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Julian Wais, Director of Investor Relations
Reg Hoare/Tim Rowntree
+44 (0)1202 857 998
+44 (0)20 3128 8100
1. Cobham is a leading global technology and services innovator, respected for providing solutions to the most challenging problems, from deep space to the depths of the ocean. We employ around 10,000 people primarily in the USA; UK and Europe and Australia. We have customers and partners in over 100 countries, with market leading positions in: wireless, audio, video and data communications, including satellite communications; defence electronics; air-to-air refuelling; aviation services; life support and mission equipment.
Cobham plc published this content on 15 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 15 May 2019 12:17:03 UTC