Nokian Tyres plc: Administrative Court ruling in the tax dispute case 2007–2010 positive for the company
Nokian Tyres plc Stock Exchange Release May 14, 2018, 10.20 a.m.
Nokian Tyres plc has received the ruling of the Administrative Court in the tax dispute of 2007–2010. The Administrative Court has overturned the tax reassessment decisions of EUR 89.2 million of the Board of Adjustment completely and ordered the Tax Administration also to pay Nokian Tyres legal costs worth of EUR 40,000.
If Tax Recipients Services Unit does not apply for permission to appeal to Highest Administrative Court in 60 days the ruling stays in force.
The company has recorded the tax reassessment decisions of EUR 89.2 million of the Board of Adjustment in full to the financial statement and result. Adjustments to the financial reporting of the now received ruling from the Administrative Court will be done when ruling is final.
Background to the Administrative court ruling
Large Taxpayers’ Office carried out a transfer pricing tax audit regarding tax years 2007–2011 during 2012–2013, investigating if the intercompany transactions between Nokian Tyres plc and its subsidiaries were at arm’s length. Company paid in total EUR 89.2 million additional taxes and punitive tax increases concerning tax years 2007–2010 based on tax reassessment decisions from the Tax Administration and appealed them by filing an appeal to the Administrative court in January 2017.
Nokian Tyres plc
VP, Corporate Communications and Investor Relations
Anne Leskelä, CFO, tel: +358 10 401 7481
Distribution: Nasdaq Helsinki Ltd, media, www.nokiantyres.com
Nokian Tyres is the world’s northernmost tyre manufacturer. The company promotes and facilitates safe driving in demanding conditions. It supplies innovative tyres for cars, trucks and special heavy machinery mainly in areas with special challenges on tyre performance: snow, forests and harsh driving conditions in different seasons. Nokian Tyres’ product development is consistently aiming for sustainable solutions for safety and the environment, taking into account the whole life cycle of the tyre. A part of the Nokian Tyres group, the tyre chain Vianor has approximately 1,500 stores in 26 countries. In 2017 Nokian Tyres had approximately 4,600 employees and net sales of approximately 1,6 billion euros. Nokian Tyres’ share is listed on the Nasdaq Helsinki. Further information: www.nokiantyres.com