Aberdeen-based Offshore Helicopter Services (OHS) UK is facing a probe into its tax affairs, with the firm potentially liable for £10 million in repayments.
If HM Revenue and Customs (HMRC) requires OHS to pay the full amount alleged to be outstanding, there is “significant doubt” as to the firm’s ability to “continue as an ongoing concern”, according to new financial filings by the company.
HMRC’s investigation relates to the alleged underpayment of custom duties and import value added tax (VAT) on imports between September 2017 and March 2020.
OHS was owned by Babcock International at that time. It has had two ownership changes since then.
Babcock sold OHS to Texas-based CHC Helicopters in 2021, but just a year later the UK’s competition watchdog forced the US company to sell off the Aberdeen business.
After 22 months of uncertainty, in April this year CHC Helicopters sold OHS to South Africa-based Ultimate Aviation Group.
Now, it seems the future of the North Sea helicopter operator, which employs about 370 people, is up in the air once again.
OHS faces £10m HMRC liability
A spokesperson for OHS said: “The company has a strong defence and will keep staff fully updated throughout the legal process.
“Tax and legal advisors have been appointed and are currently preparing a multi-faceted defence, on various grounds, in respect of this matter.”
According to OHS’s latest annual report, the firm received demands for the alleged outstanding tax payments last month.
If OHS is unsuccessful in defending the HMRC case, “the liability inclusive of interest or penalties would be in the region of £10m”, the report added.
In these circumstances, OHS said it would “need to obtain additional finance and/or reach agreement with HMRC regarding an instalment repayment plan, neither of which are currently in place”.
The firm went on: “As a result of this matter, the directors consider that there is a material uncertainty that may cast significant doubt over the company’s ability to continue as an ongoing concern.”
HMRC declined to comment.
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