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
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