Telit Communications Plc (LON:TCM) announced that it has been informed that the first level tax court in Italy has rejected appeals filed by the firm against penalty deeds issued by Italian tax authorities in August 2015.
In a statement, the AIM-listed Internet of Things (IoT) enabler said it intends “to appeal and to vigorously defend its position and has been advised that its position in this matter remains strong.”
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It added that the aggregate value of the penalty deeds remains at approximately €5mln, as set out in the group's annual report for the year ended 31 December 2016.
Telit noted that the penalty deeds are separate from the dispute on the merits of its tax assessments with the Italian tax authorities with regard to historical VAT assessments.
As announced on 12 January 2018, Telit noted that two levels of tax court in Italy have previously found in favour of the group on the merits of whether VAT assessments for the 2005, 2006 and 2007 tax years should have been made against it.
The group said that matter remains open before the Italian Supreme Court and Telit does not expect it will be heard before 2022.
Telit added that intends to defend its position that the VAT assessments should be annulled.
In early morning trading, Telit shares were down 2% at 157.6p.