Smart Parking Limited (ASX:SPZ) UK VAT

The settlement results in:

•  HMRC withdrawing assessments raised in August 2019 for $3.0m which were provided for in the FY19 accounts.
•  HMRC refunding an overpayment of input VAT of $2.9m.
•  SPZ writing back to profit $6.9m of prior year input VAT which is a one-off benefit in H1 FY21. This comprises the reversal of a $4m provision in the FY20 accounts for unpaid input VAT, in addition to the cash refund of $2.9m for overpaid input VAT.
•  SPZ withdrawing Notices of Appeal that had been lodged in relation to the matter.
•  SPZ restricting input VAT on a small number of leased sites where SPZ acts as principal.