After "Globes" revealed last week that Zim Integrated Shipping Services Ltd. (NYSE: ZIM) had asked the Israel Tax Authority for a far-reaching reduction in its tax liability, the company's main shareholder Idan Ofer has made clear that he has not been connected to the request. Ofer is the controlling shareholder in Kenon Holdings (NYSE: KEN; TASE: KEN), which holds a 26% stake in Zim.
In a statement to the media, Ofer said, "I am not involved in Zim's enquiry regarding the change in the tax collection regime, if there was indeed such an enquiry. If I had been asked my opinion, I would have suggested that Zim did not request a change in the tax collection regime."
Zim became Israel's most profitable company in 2021 and began paying tax for the first time in many years. Over the years, the shipping company has not been paying tax because it has accumulated large losses.
Last week "Globes" revealed that Zim is seeking legislation that would result in it paying tonnage tax rather than company tax, resulting in hundreds of millions of shekels reduction in its tax liability.
Published by Globes, Israel business news - en.globes.co.il - on January 16, 2022.
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