The Corrib gas filed. A challenge over the windfall gains tax on the energy sector by the operator of the field off the west coast has been admitted to the fast-track commercial division of the High Court.A challenge over the windfall gains tax on the energy sector by the operator of the Corrib gas field off the west coast has been admitted to the fast-track commercial division of the High Court.
Vermilion is seeking a declaration that the regulation bringing in the windfall tax is invalid and also seeking the return of some €98m it has paid in the tax despite recording losses since 2016, the first full year of production from Corrib. The tax was introduced in response to very high prices in the electricity market arising out of Russia’s was against Ukraine.
It applied to profits which are above a 20pc increase in the average of taxable profits and member states could decide whether or not to include 2022.