Corre Energy, the renewable energy storage developer, was a darling of the Irish stock market this time last year, having seen its shares jump 230 per cent over the previous 12 months to a peak of €4 as it played into the themes of green energy transition, environmental, social and governance (ESG) investments and energy security in the wake of the war in Ukraine.
A downward drift in the stock since then – even as Corre Energy continued to hit milestones in its development plans – was accelerated on Thursday when it emerged that UK tax authorities had linked a founding director and big shareholder, Darren Patrick Green, to an alleged tax-avoidance scheme.
Shares slid 9 per cent on the day to fall below its September 2021 initial public offering (IPO) price of €1 for the first time and end the session at 91 cent. They’ve since dipped further to 90 cent.
Corre Energy announced after markets closed on Thursday that Green had stepped down from his role as president and as an executive director.
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The UK’s HM Revenue & Customs (HMRC) alleges the scheme involves UK-based contract workers’ use of a Singapore company ultimately owned by Green, called Procorre LLP, to avoid paying income tax and national insurance.
[ Corre Energy director quits amid UK tax allegationsOpens in new window ]
It claims that it involved workers – or companies that they have set up – invoicing clients for services and transferring the money received to Procorre LLP. The Singapore company then deducts a fee before returning the rest of the individuals or their companies.
Green told The Irish Times that he was “absolutely astonished” on Thursday to have been named by HMRC in this way, was not aware of the issue beforehand, and had not been a director or been involved in Procorre LLP for some years, even though he was the beneficial owner. He said his legal team is now dealing with HMRC.
While Green’s sudden and swift departure from Corre could raise questions about his future intentions over the 38 per cent stake he holds in the Dublin-listed company, he said that he remains committed to the stake and supporting its Irish-led team.
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