Stockmann - Company Announcement

Stockmann ordered to pay EUR 19.6 million in additional taxes in Finland and Sweden; the company will appeal against the decisions

Helsinki, Finland, 2016-01-13 10:30 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Company Announcement 13.1.2016 at 11:30 EET 

The Stockmann Group has received tax reassessment decisions from the Finnish
and Swedish tax authorities requiring the Group companies to pay EUR 19.6
million in additional taxes, including punitive tax increases and related
interest. Stockmann considers the decisions unfounded and will appeal against
them. The total additional tax will be booked in the financial statements and
result for 2015. Stockmann will apply for postponements to the payments until
the final decisions about the taxes have been made. 

In Finland, Stockmann plc received a tax reassessment decision from the Tax
Administration relating to a tax audit which examined the market basis of
interest rates in the Group’s internal financing. The company’s taxable income
for 2009-2011 was increased by an amount equating to the difference between the
interest charged as a transfer pricing adjustment and the market-based interest
that accords with the view of the Tax Administration. Under the reassessment
decision, the company is obliged to pay EUR 10.3 million in additional taxes,
including interest, in January 2016. Stockmann will apply for a postponement to
the payment. 

In Sweden, Stockmann Sverige AB and AB Lindex received two reassessment
decisions from the Tax Agency based on tax audits undertaken in the companies.
The tax audits in AB Lindex examined the market basis of transfer prices in the
Lindex Group’s internal business transactions during 2012 and 2013. The
decision concerning Stockmann Sverige AB is based on a change in Sweden’s tax
legislation introduced at the start of 2013, which limited the tax
deductibility of a Group’s internal interest payments. Under the reassessment
decisions, the companies are obliged to pay in total EUR 9.2 million in
additional taxes, including punitive tax increases and interest. The possible
payment will take place only after the final decisions on the taxes have been
made. 

Further information:
Lauri Veijalainen, CFO, tel. +358 9 121 5062
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.stockmanngroup.com


STOCKMANN plc


Per Thelin
CEO


Distribution:
Nasdaq Helsinki
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