County Administrative Court affirms Swedish Tax Agency’s ruling
County Administrative Court affirms Swedish Tax Agencys ruling
Solna, Sweden, December 10, 2010
ICA has previously released information, including in its interim and annual reports, on a tax dispute concerning interest deductions for the period 2004-2008. The County Administrative Court has now affirmed the Swedish Tax Agencys decision to deny ICA interest deductions of approximately SEK 3.5 billion. The tax claim amounts to approximately SEK 1.2 billion. After previous rulings, the Swedish Tax Agency has adjusted the amounts downward.
"The County Administrative Courts decision is naturally a disappointment to us. We and our legal advisors believe that we have complied with current laws," says Per Behm, General Counsel at ICA AB.
ICA will appeal the ruling to the Administrative Court of Appeal.
New rules introduced on January 1, 2009 limit deductions for intra-Group loans. At that point ICA adapted its internal financing to the new law. The ICA Groups tax expense amounted to SEK 722 million in 2009, corresponding to an effective tax rate of 31.3 percent.
For further information, please contact: ICAs press hotline, phone +46 70 253 66 60
----------------------------------------------------------------------------------------------------- About ICA The ICA Group (ICA AB) is one of the Nordic regions leading retail companies, with around 2,200 of its own and retailer-owned stores in Sweden, Norway and the three Baltic states. The Group includes ICA Sweden, ICA Norway, Rimi Baltic and ICA Real Estate. ICA also offers financial services to Swedish customers through ICA Bank. ICA AB is a joint venture 40% owned by Hakon Invest AB and 60% by Royal Ahold N.V. of the Netherlands. According to a shareholder agreement, Royal Ahold and Hakon Invest jointly share control over ICA AB. Through Royal Ahold, ICA AB is part of an international retail network. For more information, please visit http://www.ica.se