STORA motions for a legal review of the judgements on leasing of aircraft

STORA motions for a legal review of the judgements on leasing of aircraft As has previously been announced, the Swedish Supreme Administrative Court on th 24 June, 1998 disallowed depreciation deductions in connection with joint ownership in two limited partnership companies active in aircraft leasing. The Supreme Administrative Court has stated that the companies cannot be deemed to be the owners of the aircraft and therefore they are denied tax deductions for value decreases. STORA has jointly with the other parties involved, Sandvik and Skanska, made an extensive analysis of the judgements and decided to motion for a legal review of the judgements by the Supreme Administrative Court. The Supreme Administrative Court has not based its decision on the argumentation put forward by the parties but rather on other grounds found in the lease agreements and without communicating with the parties. In the companies' opinion, the Supreme Administrative Court has thereby misinterpreted the agreements. For example, the Supreme Administrative Court has disregarded an essential qualification in a specific clause of the lease agreement on which the Court's decision has been based. If this had not been the case and had the companies been given the opportunity to express their view, such misinterpretation could have been prevented. Therefore, the companies have concluded that there are grounds for a legal review by the Court. Although it is very unusual to require a legal review of a judgement by the Supreme Administrative Court, the companies have - after having received opinions from legal scholars - decided to require such a review. For additional information, please contact: - Karin Lagerkvist, Vice President Taxes. Tel.: +46 (0)8 613 66 06 - Johan Feldreich, General Counsel. Tel.: +46 (0)23 78 21 32 ------------------------------------------------------------ http://www.bit.se/bitonline/1998/10/22/19981022BIT00250/1022ENG.doc http://www.bit.se/bitonline/1998/10/22/19981022BIT00250/1022ENG.pdf