Nokian Tyres plc: Administrative court ruling in the tax dispute case 2007–2010 now final
Nokian Tyres plc Stock Exchange Release March 8, 2019, 6:15 p.m.
The Supreme Administrative Court has rejected an application for leave to appeal from the Tax Recipients’ Legal Services Unit in Nokian Tyres’ 2007–2010 tax dispute. The decision of the Administrative Court of Hämeenlinna in May 2018 is thus final and the tax dispute for the tax years 2007–2010 completed.
In May 2018, the Administrative Court overturned the tax reassessment decisions of EUR 89.2 million of the Board of Adjustment completely and ordered the Tax Administration also to pay Nokian Tyres legal costs worth of EUR 40,000.
The company has recorded the tax reassessment decisions of EUR 89.2 million of the Board of Adjustment in full to the financial statement. Adjustments to the financial reporting will be done during the first quarter of 2019. The decision of the Supreme Administrative Court has no cash flow impact as the Tax Administration returned the additional taxes paid by the company already in 2018.
Background to the tax dispute
Large Taxpayers’ Office carried out a transfer pricing tax audit regarding tax years 2007–2010 during 2012–2013, investigating if the intercompany transactions between Nokian Tyres plc and its subsidiaries were at arm’s length. Company paid in total EUR 89.2 million additional taxes and punitive tax increases concerning tax years 2007–2010 based on tax reassessment decisions from the Tax Administration and appealed them by filing an appeal to the Administrative Court in January 2017.
Nokian Tyres plc
SVP, Corporate Communications and Investor Relations
Teemu Kangas-Kärki, CFO, tel. +358 10 401 7750
Distribution: Nasdaq Helsinki Ltd, media, www.nokiantyres.com
Nokian Tyres is the world’s northernmost tire manufacturer and one of the most sustainable companies in the industry. We offer peace of mind in all conditions by developing high-quality, safe and eco-friendly tires for passenger cars, trucks and heavy machinery. We are especially well known for our innovative winter tires. Our group also includes the Vianor chain, specializing in vehicle maintenance and tire services. In 2018, the company’s turnover was approximately EUR 1.6 billion and it employed some 4,800 people. Nokian Tyres is listed on Nasdaq Helsinki. Further information: www.nokiantyres.com