ICL (TASE: ICL: NYSE: ICL) (previously Israel Chemicals) described in its second quarter 2022 financial assertion that it has agreed to fork out royalties of $188 million (NIS 640 million) for excessive revenue made from Israel’s purely natural means in between 2016 and 2020.

ICL reported it has arrived at an being familiar with with the Israeli Tax Authority and settled the dispute concerning the Israeli Law for Taxation of Profits from Pure Means. The settlement delivers last assessments for the tax a long time 2016 to 2020, as properly as outlines understandings for the calculation of the levy for the years from 2021 and onwards. Sector resources estimate that by the end of 2022, ICL would have compensated NIS 2 billion into Israel’s sovereign wealth fund.




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ICL mentioned, “The business welcomes the conclude of the dispute, which was arrived at following the summary of the talks, and prevented authorized proceedings about several many years and offers enterprise certainty for the coming a long time.”

The dispute commenced in 2018. While the point out envisioned royalties of about NIS 400 million yearly for excess profits on potash and other pure sources, ICL insisted that it experienced no tax liability due to an appraisers’ opinion stating that its fixed procurements amounted to $6 billion – a determine significantly bigger than governing administration assessments.

The new tax on the excess gains was released next the Sheshinski 2 Committee in 2014. A lot of the revenue owing to be paid out into the sovereign wealth fund will arrive from Israel’s offshore purely natural fuel creation. Following four yrs of sluggish gasoline output in which the commence of operations of the fund was delayed, the sovereign wealth fund was last but not least opened in Could, with accumulated payments of NIS 1.14 billion.

Printed by Globes, Israel small business information – en.globes.co.il – on July 27 2022.

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