The Spanish group Repsol will contest in court the new tax introduced by the Madrid authorities on the exceptional profits of energy companies, arguing that it violates Spanish and European Union legislation, Reuters reports.

Repsol estimated that the tax would represent a cost of 450 million euros ($481.6 million) on the company’s activities from 2022.

“Repsol considers that the tax is not compatible with the Spanish Constitution and EU law and will therefore pursue the appropriate legal channels for its cancellation and, where appropriate, the reimbursement of the amounts collected,” Repsol said in the auditor’s statement attached to its 2022 financial results, according to Agerpres.

The Spanish government has approved the imposition of a temporary tax on the exceptional profits of energy companies and banks, through which it would obtain seven billion euros, to finance measures to alleviate the pressures on the cost of living.

Repsol’s announcement comes after Spanish banking associations appealed the imposition of the tax to Spain’s High Court.

The Association of Spanish Oil Companies (AOP) had announced that it did not intend to challenge the new tax in court.

Firms can also appeal individually against the tax authorities to claim the money back, once they make the first payment before February 20.