Swedish Court of Appeal rules against Fortum in income tax case regarding the years 2009-2012
FORTUM CORPORATION STOCK EXCHANGE RELEASE 30 June 2017 at 17:00 EEST
The Court of Appeal in Stockholm, Sweden, has on 30 June 2017 ruled against Fortum related to Fortum's income tax assessments in Sweden for the years 2009-2012. Due to the decision of the Court of Appeal, Fortum will book a tax cost of 1,175 MSEK (EUR 123 million) in the second quarter 2017 results. The booking will not have any cash flow effect for Fortum, as the additional taxes and interest have already been paid in 2016.
The case concerns Fortum’s right to deduct intra-group interest expenses in Sweden in the years 2009-2012. Fortum restructured its operations and reallocated loans in 2004-2005 to ensure future operations. Even though these reallocations did not impact Fortum's tax base in Sweden, the Swedish tax authorities considered that the Swedish interest deduction limitation rules were still applicable in Fortum’s case.
"We do not agree with the court's decision and we will apply for the right to appeal from the Supreme Administrative Court", says Reijo Salo, Fortum's Vice President, Corporate Tax.
Acting Head of Investor Relations and Financial Communications
Reijo Salo, VP, Corporate Tax, tel. +358 50 452 4443
Fortum's Interim Report January-March 2017, Note 20: Legal actions and official proceedings
Fortum's tax footprint 2016
Related press releases:
Press release 29 April 2016: Fortum to appeal income tax decisions made by theSwedish Administrative Court regarding years 2009–2012
Press release 10 November 2014: Fortum will appeal Swedish tax authoritydecision on additional tax for 2012
Press release 18 October 2013: Administrative court approved Fortum's appeal onthe Swedish tax authority's decision on additional tax for 2009
Press release 14 January 2013: Fortum will appeal Swedish STA decision onadditional tax for 2010
Press release 4 January 2012: Fortum will appeal the Swedish tax authoritydecision on additional tax for 2009
Fortum is a leading clean-energy company that provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 8,000 professionals in the Nordic and Baltic countries, Russia, Poland and India, and 62% of our electricity generation is CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on Nasdaq Helsinki. www.fortum.com