Crown Oil defends tax arrangements

HISTORIC tax arrangements used by Bury-based oil and energy group Crown Oil are being challenged by HM Revenue & Customs.

The family business, established 60 years ago, supplies homes and businesses.

In newly-filed accounts the company said “certain transactions” it entered into in 2004 and 2005 are being looked into by HMRC, but it is defending the arrangements.

It said: “Enquiries are ongoing at the date of approval of the accounts. The directors are defending the treatment adopted by the company and have taken advice which supports the view that the transactions were dealt with appropriately.

“Any potential liability could not be easily quantified at this stage and the directors do not consider that any material liability exists at August 31. No provision has been made in the accounts in relation to these matters.”

During the year to August 31 the company reported a 7% dip in pre-tax profits to £3.8m, on sales of £157.6m, up 7%.

The company, which employs around 130 staff, switched banks from Lloyds to Barclays during the period.

In August it bought the assets of Samuel Cooke, a distributor of fuels and lubricants that went into administration.