OTE’s Telekom Romania Mobile charged EUR 33 mln for underdeclared incomes

Romania’s tax collection agency ANAF calculated EUR 33.5 million supplementary VAT and corporate tax, including the fines, interest, and penalties for Telekom Romania Mobile Communications (TKRM), controlled by the Greek group OTE, following a tax inspection carried out for the fiscal years 2017-2021.

Telekom Romania Mobile reported EUR 287 million in revenues and EUR 17 million EBITDA for the entire year 2023.

OTE reached an agreement to sell TKRM to Romania’s major telco Digi Communications, but the competition body still has not cleared the deal.

Greek OTE group said in a note to investors, consulted by Ziarul Financiar, that its Romanian subsidiary intends to make use of the tax amnesty recently enforced by the Romanian government – which would write off its fines, interest, and penalties if the principal amount is settled. However, only the overdue tax payments as of August 31 or earlier are eligible for the tax amnesty.

At the same time, OTE said Telekom Romania Mobile will challenge the ANAF’s decision in relevant courts in accordance with the applicable legislation.

Digi Communications concluded in May this year an agreement for the acquisition of Telekom Romania Mobile Communications through a vehicle majority owned by Digi and a minority-owned by the Clever Media group, controlled by Adrian Tomșa. The deal was announced simultaneously by both Digi Communications and Greek company OTE, controlled by German group Deutsche Telekom.

The deal is, however, subject to a prior permit from the competition body.

(Photo source: Dreamstime.com)