Nokian Tyres Plc: Tax Administration’s decision in the appeal concerning the tax year 2011 positive for the company
Nokian Tyres plc Stock Exchange Release June 8, 2018, 10:30 a.m.
The reassessment decision from the Tax Administration concerning the tax year 2011 is positive for Nokian Tyres. The Tax Administration has approved the appeal Nokian Tyres made in November 2017, and the Tax Administration has returned the paid EUR 59 million to the company. Tax Recipients Services Unit can appeal on the decision by August 3, 2018. Adjustments to the financial reporting of the now received decision will be done when the decision is final.
In October 2017, Nokian Tyres received a reassessment decision from the Tax Administration concerning the tax year 2011, according to which the company was obliged to pay a total of EUR 59 million, of which EUR 39 million were additional taxes and EUR 20 million were punitive tax increases and interest. The company recorded the amount in full to the financial statement and result of Q3/2017. Payment was due in November 2017. The company considered the reassessment decision of the Tax Administration unfounded and appealed in November 2017 to the Board of Adjustment.
Given that the circumstances of the tax year 2011 and the Tax Administration’s arguments as a basis for tax reassessments were essentially in line with the circumstances of the 2007-2010 tax years, for which the Hämeenlinna Administrative Court decided on 8 May 2018 (18/0166/1) for the benefit of the company, the Tax Administration considered that the company's appeal was acceptable.
Nokian Tyres plc
Vice President, Corporate Communications and Investor Relations
Further information: Anne Leskelä, CFO, tel: +358 10 401 7481
Distribution: Nasdaq Helsinki Ltd, the media, and www.nokiantyres.com
Nokian Tyres is the world’s northernmost tyre manufacturer. The company promotes and facilitates safe driving in demanding conditions. It supplies innovative tyres for cars, trucks and special heavy machinery mainly in areas with special challenges on tyre performance: snow, forests and harsh driving conditions in different seasons. Nokian Tyres’ product development is consistently aiming for sustainable solutions for safety and the environment, taking into account the whole life cycle of the tyre. A part of the Nokian Tyres group, the tyre chain Vianor has approximately 1,500 stores in 26 countries. In 2017 Nokian Tyres had approximately 4,600 employees and net sales of approximately 1,6 billion euros. Nokian Tyres’ share is listed on the Nasdaq Helsinki. Further information: www.nokiantyres.com