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Finnish Energy Company, Fortum appealing Swedish tax authority's tax bill

Monday, 14 January 2013
Finnish Energy company, Fortum has been hit by back tax request from the Swedish tax authorities, something which the company is appealing.

The energy giant has been hit with a tax bill of Skr 451 million for the income year 2010. For 2009, the Swedish tax authority previously required that Fortum pay Skr426 million more in taxes. That decision has stressed Fortum impressively and has appealed to the administrative court, the company said on Monday.

Fortum reported that it has received an income tax assessments of Skr 444 million, in addition to the Skr 1.7 billion already paid for 2010.

The assessments are mainly related to Fortum's restructuring in 2004 - 2005. Fortum considers the claim to be without foundation and will appeal. The Swedish tax authority claims is said to be based on new regulations that came into force in 2009, which means that the agency has made a reassessment of the decision the group made in 2005 and 2008, writes Fortum.

In 2004 - 2005, Fortum carried out a considerable restructuring in Sweden and in Finland in connection with the listing and sale of Neste Oil shares. The transactions had no impact on the income generated by Fortum’s Swedish subsidiaries. In 2011, Fortum was one of the largest taxpayers in Sweden and the second largest taxpayer in Finland.

"As an international company in a capital-intensive business, Fortum needs to manage its funding for the group as a whole. To be able to serve our customers and to support the businesses on the basis of long-term commitment and in a sustainable way, there has to be a good balance in the capital structure. When taking care of the capital needs of the businesses, we act in line with the principles of an industrial company and with respect for business continuity," Fortum writes in a press release.
By Scancomark.com Team

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