Nokian Tyres plc Tax administration’s positive decision in the appeal concerning tax year 2011 final
Nokian Tyres plc Stock Exchange Release March 15, 2019 1:15 p.m.
On March 8, 2019 Nokian Tyres announced that the Supreme Administrative Court had 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. As a result of the decision of the Supreme Administrative Court, the Tax Recipients’ Legal Services Unit has withdrawn their appeal concerning Nokian Tyres tax year 2011 and the positive decision taken by the Tax Administration in 2018 is thus final.
Adjustments to the financial reporting concerning tax year 2011 will be done during the first quarter of 2019. The decision has no cash flow impact in 2019 as the Tax Administration returned the additional taxes paid by the company already in 2018.
Background:
Large Taxpayers’ Office carried out a transfer pricing tax audit regarding tax year 2011 during 2012–2013, investigating if the intercompany transactions between Nokian Tyres plc and its subsidiaries were at arm’s length.
In October 2017, Nokian Tyres received a reassessment decision from the Tax Administration concerning the tax year 2011, as a result of which the company paid a total of EUR 59 million, of which EUR 39 million were additional taxes and EUR 20 million were tax increases and interest. The company considered the reassessment decision of the Tax Administration unfounded and appealed to the Board of Adjustment.
In June 2018, the Board of Adjustment approved the appeal that Nokian Tyres made, and the Tax Administration returned the previously paid EUR 59 million in additional taxes and interest to the company in June 2018. The Tax Recipients’ Legal Services Unit appealed the decision to the Administrative Court in July 2018.
Nokian Tyres plc
Päivi Antola
SVP, Corporate Communications and Investor Relations
Further information:
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