SEOUL: Abu Dhabi-based International Petroleum Investment Co (IPIC), which sold its controlling stake in a South Korean refiner in 2010 for more than $2 billion (Dh7.3 billion), has filed a request for arbitration, seeking compensation for a tax payment stemming from the sale, according to a South Korean official.
Two subsidiaries of IPIC sold their 70 per cent stakes in Hyundai Oilbank in 2010, paying sales tax in South Korea, Park Jae-hyung, a director at the National Tax Service of South Korea told Reuters by phone. He declined to disclose the tax amount.
“They say they as Dutch companies don’t need to pay sales tax in South Korea according to an agreement between the Netherlands and South Korea. But we consider them as paper companies in the Netherlands,” Park said.
The filing, dated May 20, was made with the International Centre for Settlement of Investment Disputes (ICSID), according to its website, which gave few details on the case.
A spokesman for IPIC was not immediately available for comment.
IPIC sold its controlling stake in the refiner to companies including Hyundai Heavy Industries.
