Decision in tax case
The Administrative Court of Appeal in Stockholm announced its decision today in the company’s case with the Swedish Tax Agency regarding the agency’s decision to impose additional taxes and tax surcharges for the years 2008 to 2012 of approximately SEK 1.2bn.
As announced by the company in July 2016, Essity has already recognized a provision and thereafter paid the disputed amount. Accordingly, the decision of the Administrative Court of Appeal will have no impact on Essity’s earnings or cash flow for 2017.
The matter in question pertains to interest expenses on loans in a Group company that arose in connection with the relocation of operations to Sweden in 2004. Like the decision of the Administrative Court on March 10, 2016, the ruling of the Administrative Court of Appeal entails that the decision of the Swedish Tax Agency will stand.
Essity intends to appeal the decision by applying for leave to appeal to the Supreme Administrative Court.
For further information, please contact:
Karl Stoltz, Media Relations Manager, +46 8 788 51 55
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30
Essity is a leading global hygiene and health company that develops, produces and sells Personal Care (Baby Care, Feminine Care, Incontinence Products and Medical Solutions), Consumer Tissue and Professional Hygiene products and solutions. Our vision is; Dedicated to improving well-being through leading hygiene and health solutions. Sales are conducted in approximately 150 countries under many strong brands, including the leading global brands TENA and Tork, and other brands, such as Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 48,000 employees and net sales in 2016 amounted to approximately SEK 101bn (EUR 10.7bn). The business operations are based on a sustainable business model with focus on value creation for people and nature. The company has its headquarters in Stockholm, Sweden, and is listed on Nasdaq Stockholm. Essity used to be part of the SCA Group. More information at www.essity.com.