Fabege’s comments on the Administrative Court of Appeal’s ruling on ongoing tax cases
The Administrative Court of Appeal today issued its rulings on a number of Fabege’s tax cases. Collectively, the judgements that were passed relate to about 20 per cent of the combined tax demand.
The background is that, as previously announced, the Swedish Tax Agency has decided to increase the taxable income of the current Fabege Group in respect of property sales that were made by limited partnerships. The transactions derive from Tornet, the old Fabege and Wihlborgs during the years 2003–2005. The combined increase in taxable income amounts to SEK 7,763m and entails an overall tax demand, including miscellaneous charges and fees, of SEK 2,484m.
The Administrative Court of Appeal’s rulings entail that the Swedish Tax Evasion Act is deemed applicable and that the transactions are to be taxed.
The rulings that have been issued show that Fabege has prevailed to a certain degree in its motions regarding how to calculate the taxable profit.
Fabege will now expeditiously analyse the rulings to be able to reach a more thorough assessment of the overall situation, since each individual case involves a different set of circumstances. As soon as this assessment has been completed, we will provide more information on how Fabege will be affected by the situation that has arisen.
Fabege is contesting the Administrative Court of Appeal’s rulings and intends to submit an appeal to the Supreme Administrative Court.
Fabege AB (publ)
For further information, please contact:
Christian Hermelin, CEO, phone 46 (0)8-555 148 25, 46 (0)733-87 18 25
Åsa Bergström, CFO, phone 46 (0)8-555 148 29, 46 (0)70-666 13 80
This constitutes information that Fabege AB (publ) may be legally obliged to publish under the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication at 3:30 pm CET on 30 September 2013.
Fabege AB (publ) is one of Sweden’s leading property companies focusing mainly on letting and managing office premises and property development. The carrying amount of the company’s property portfolio is approximately SEK 32.2bn. The portfolio is concentrated in the Stockholm region and has an annualised rental value of SEK 2.3bn and a lettable area of 1.1m sqm. Fabege’s shares are listed on Nasdaq OMX Stockholm, Large Cap segment.
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