Ovako receives extended tax reassessment notice in Finland

As noted in the Ovako Annual Report, the tax authority in Finland has previously sought to limit the deductibility of interest expenses for the years 2010-2013. Ovako Finland Oy has now received a notice from the Finnish tax authority extending their claim to also include the years 2014-2016. In light of existing practices for interest deduction in Finland during this period, and after consulting with external tax lawyers, Ovako has again appealed the tax agency's claim.

The extend reassessment notice from the Finnish tax authority entails a demand for payment of approximately EUR 6.1 million (including interest and penalties), bringing the total claim to EUR 15.6 million. The demand relates specifically to interest expenses on loans from Ovako Finland Oy's Swedish parent company, Ovako AB (publ), which the tax authority deem non-deductible.

After consultation with external tax lawyers, Ovako disagrees with the extended reassessment from the Finnish tax authorities and has submitted an appeal. Until the appeal is settled Ovako will not be required to pay the demand.

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For more information please contact:
Press and media contacts
Oskar Bosson, Head of Group Communications
Telephone: +46 704 10 71 80
E-mail: oskar.bosson@ovako.com

Investor relations
Stina Thorman, Head of Investor Relations
Telephone: +46 (0)862 13 38
E-mail: stina.thorman@ovako.com

About Ovako

Ovako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Our steel makes our customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally friendly products.

Our production is based on recycled scrap and includes steel in the form of bar, tube, ring and components. Ovako is represented in more than 30 countries and has sales offices in Europe, North America and Asia. Ovako’s sales in 2016 amounted to EUR 781 million, and the company had 2,800 employees at year-end. For more information, please visit us at www.ovako.com.

This information is information that Ovako AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 09.15 CET on January 12, 2018. 

About Us

About OvakoOvako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Our steel makes our customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally-friendly products. Our production is based on recycled scrap and includes steel in the form of bar, tube, ring and pre-components. Ovako has over 3,000 employees in more than 30 countries. Ovako’s sales in 2017 amounted to EUR 921 million. Since June 2018, Ovako is part of the Japanese steel corporation Nippon Steel & Sumitomo Metal Corporation that employs 92,000 globally and has a revenue of EUR 37 billion. For more information, please visit us at www.ovako.com and www.nssmc.com.