Semisub rig owner Dolphin Drilling has lost a £12.8m ($16.3m) case against UK tax authorities.
The Oslo-listed company has been in a court clash with HM Revenue and Customs (HMRC) since 2020 over tax deductions claimed in 2014 and 2015 linked to the hire of the now-scrapped Borgsten Dolphin rig.
Dolphin had already won two cases in 2020 and 2022; however, the UK Court of Appeal has now found in HMRC’s favour, with the Øystein Stray Spetalen-backed company liable for tax claim payments of £9.9m, with interest and costs of £2.9m.
The owner of currently three semis said it has taken steps to appeal the court’s decision but added that it “could take a number of months or potentially years until a final outcome is reached”.
“We are extremely disappointed to note the decision of the Court of Appeal today which finds in favour of HMRC and which overturns the judgements in the First-tier Tax Tribunal and Upper Tribunal, not only in the court’s interpretation of the case, but also in a fundamental shift in interpretation of the language in the relevant legal test which has potentially significant ramifications for assets within UK territorial waters,” said Stephen Cox, chief financial officer at Dolphin.
“Our legal teams have advised the position to be appealable and as such Dolphin Drilling has immediately taken steps to seek permission from the courts to appeal this decision. We will continue to defend our position,” Cox added.
