NASSAU, BAHAMAS- AML Foods says that it plans to "vigorously contest" a nearly $1 million assessment by the Department of Inland Revenue (DIR) related to outstanding Value-Added Tax (VAT) for items sold VAT-free in Grand Bahama under the Special Economic Recovery Zone (SERZ) order.

The BISX-listed company in its second-quarter report for the period ending October 31st noted, "On November 21st the company was issued a formal and final levy from the Department of Inland Revenue (DIR) concerning alleged unpaid taxes totaling $925,732.13 which related to VAT outstanding for items sold VAT free in Grand Bahama during the period January 1st, 2019 through December 31st, 2021 under the SERZ order."

AML said that with the assistance of its attorneys, it intends to initiate a formal dispute against the DIR related to this assessment. 

"To comply with the appeal's process, the company will be required to place a bond or provide full payment of the outstanding liability which the company intends to make on or before December 20, 2023. This payment will be made without waiving any rights in the ongoing dispute and the company intends to vigorously contest the assessment," the company stated.

In its second quarter, AML reported that its sales were $43 million, an improvement of $1.4 million or 3.3 percent compared to the same period in the previous year.  The company recorded a net loss of $0.5 million compared to a net loss of $0.3 million for the same quarter last year.

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