Bezeq to pay NIS 462m tax on Yes merger

Shaul Elovitch Photo: Eli Yizhar
Shaul Elovitch Photo: Eli Yizhar

Bezeq has reached agreement with the Israel Tax Authority on recognition of losses in satellite broadcasting unit Yes. 

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) will pay NIS 462 million tax arising from the merger with its satellite broadcaster subsidiary Yes.

In a notice to the Tel Aviv Stock Exchange, Bezeq reports that it has reached agreement with the Israel Tax Authority on a tax assessment that brings to an end the company's dispute with the state concerning losses in Yes, in the context of Bezeq's acquisition of the shares of Eurocom in Yes for NIS 689 million. Bezeq and Eurocom are controlled by Shaul Elovitch. Bezeq says that the Tax Authority had given consent to the merger of Yes into Bezeq.

For the purposes of the agreement, Yes's accumulated losses are set at NIS 5.26 billion, plus a loss of NIS 315 million for the period 2013-2015.

Last year, the Israel Securities Authority disallowed the recognition of a capital gain of NIS 831 million in Bezeq's second quarter financial statements.

Published by Globes [online], Israel business news - www.globes-online.com - on September 18, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Shaul Elovitch Photo: Eli Yizhar
Shaul Elovitch Photo: Eli Yizhar
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