Waste firm Biffa’s £1.2bn takeover could be thrown into doubt by HMRC landfill tax investigation
The £1.2billion takeover of Biffa could be thrown into doubt by a landfill tax investigation.
Revenue & Customs is looking into the waste firm’s accounts, which could result in a £168million bill.
The FTSE250 company’s accounts show it has so far set aside only £20million for this.
Scrutiny: Revenue & Customs is looking into Biffa’s accounts, which could result in a £168million bill
The investigation could also complicate a bid by Energy Capital Partners.
A City tax source said: ‘Any buyer is not going to like the prospect of paying out £168million. They will undoubtedly want a really intensive detailed discussion around that.’
Biffa’s latest market update said the maximum liability had risen by £15million from £153million, while the minimum was £170,000.
No formal claim for tax has yet been lodged against Biffa, but accountant Ernst & Young has been drafted in to advise the company.
Biffa has said it believes it has a ‘strong defence’.
Biffa was contacted for comment.