Tax claim from Swedish authorities
Tax claim from Swedish authorities
Solna 15 June, 2007
The Swedish Tax Agency has denied the interest deductions claimed by ICA Finans AB, a company in the ICA Group, for interest on borrowings from the Irish subsidiary ICA Ahold Export Unltd of nearly SEK 1.8 billion for the period 2001-2003. The Swedish Tax Agencys claim amounts to SEK 709 million, including penalties and interest. The operation of the Irish subsidiary was wound up in 2003. ICA is contesting the claim and penalties and will appeal the ruling to the County Administrative Court.
"We feel that ICA has followed applicable tax rules and regulations and that the interest deductions we have claimed have been handled correctly from a tax standpoint. Prior to the financing from the Irish subsidiary, outside attorneys and tax advisers made thorough analyses to ensure we would not violate any laws," says Per Behm, ICA ABs chief legal counsel.
The Swedish Tax Agency is also conducting an audit of the restructuring of the ICA Groups finance operations in July 2004. The Tax Agency is determining whether to deny ICA interest deductions of SEK 1.7 billion claimed in 2004-2005. ICA is convinced that the deductions were in compliance with tax rules.
For further information, please contact: ICAs press hotline, telephone +46 70 253 66 60
----------------------------------------------------------------------------------------------------- About ICA The ICA Group (ICA AB) is one of the Nordic regions leading retail companies, with around 2,300 of its own and retailer-owned stores in Sweden, Norway and the Baltic states. The Group includes the sales companies ICA Sverige, ICA Norge and Rimi Baltic. ICA also offers financial services to Swedish customers through ICA Banken. 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 a controlling influence over ICA AB. Through Royal Ahold, ICA AB is part of an international retail network. For more information, please visit http://www.ica.se