Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 68

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 68
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| Profit (loss) before taxation                                     | -54,762 | -34,637 |
| Expected tax charge (recovery) based on a weighted average of 25% 
 (2023 - 25%) (UK, US and Canada)                                  | -13,690 |  -8,669 |
| Effect of expenses not deductible in determining taxable          
 profit                                                            |  -1,839 |     851 |
| Temporary differences                                             |   9,936 |   5,841 |
| Other tax adjustments                                             |     224 |      18 |
| Capital gains tax                                                 |     449 |       - |
| Unutilised tax losses carried forward                             |   5,260 |   1,959 |
| Taxation charge in the financial statements                       |     340 |       - |

The group has tax losses available to be carried forward and used against trading profits arising in future periods of approximately$124,000,000 (2023 -$136,000,000). These are subject to tax audit.

The weighted average applicable tax rate was 25% (2023: 25%).

Income tax assessments (Canada)

For the tax years 2021 and 2022, the Company has received notices of assessment totalling $CAD 12.0 million from Canadian tax regulators denying certain tax deductions and challenging certain input tax credits. The Group, supported by tax professionals at EY, has challenged these assessments and believes it will prevail. However, in order to challenge the assessments, the Group was required to provide security to the regulators and the security provided was a $CAD 5.0 million lien over its Baie Comeau facility. No provision has been made for these Canadian liabilities as the Group believes that its assessments will be upheld and ultimately be in a refund position with the Canadian tax regulators. However, there can be no certainty that this will be the case and an adverse outcome to the assessments will have a significant impact to the Group’s financial position.

Other tax authorities may also disagree with tax positions that we have taken, which could result in increased tax liabilities. For example, His Majesty’s Revenue & Customs (“HMRC”), the IRS or another tax authority could challenge our allocation of income by tax jurisdiction and the amounts paid between our affiliated companies pursuant to our intercompany arrangements and transfer pricing policies, including amounts paid with respect to our intellectual property development. Similarly, a tax authority could assert that we are subject to tax in a jurisdiction where we believe we have not established a taxable connection