The favourable decision granted to Fortum on Belgian financing company taxation remains in force

​FORTUM CORPORATION ONLINE NEWS 30 NOVEMBER 2016

 

The Supreme Administrative Court in Finland has on 30 November 2016 decided not to grant a permit to appeal to the Tax Recipients’ Legal Service Unit (VOVA). VOVA had appealed the decision of the Administrative Court in Helsinki given on 16 May 2016 regarding the tax assessment imposed on Fortum in December 2013 for the year 2007. As the Supreme Administrative Court did not grant a permit to appeal, the favourable decision granted to Fortum by the Administrative Court in Helsinki remains in force.

According to the tax assessment given to Fortum Oyj in December 2013, the additional taxes including penalties and late payment interest would have amounted to EUR 136.4 million. Fortum had not made a provision.
 
Fortum Corporation
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Further information:
Reijo Salo, Vice President, Corporate Tax, tel. +358 50 452 4443

Background information:
The Finnish tax authority levied the taxes in 2013 based on the revenue earned by Fortum’s Belgian subsidiary in 2007. The same revenue has already been taxed in Belgium in accordance with Belgian tax legislation. Fortum appealed the additional taxes, and the Board of Adjustment approved the appeal on 21 August 2014. VOVA appealed the Board of Adjustment’s decision to the Administrative Court. On 16 May 2016 the Administrative Court announced its decision in the case. The court ruled in Fortum’s favour and rejected the appeal of the Tax Recipients’ Legal Services Unit. The Tax Recipients’ Legal Service Unit appealed the Administrative Court’s decision to the Supreme Administrative Court.

Read more:
Fortum’s Interim Report January-September 2016, Note 22: Legal actions and official proceedings: http://apps.fortum.fi/investors/Fortum_Q3_2016_Interim_Report.pdf

Fortum's tax footprint is available online:
http://apps.fortum.fi/gallery2/Fortum_as_a_Taxpayer.pdf

Related press releases:
Press release 16 May 2016: Finnish Administrative Court confirms the favourable decision granted to Fortum on Belgian financing company taxation
http://www.fortum.com/en/mediaroom/Pages/finnish-administrative-court-confirms-the-favourable-decision-granted-to-fortum-on-belgian-financing-company.aspx
Press release 2 September 2014: The Board of Adjustment approved Fortum’s appeal on additional taxes in Finland for 2007
http://www.fortum.com/en/mediaroom/Pages/the-board-of-adjustment-approved-fortums-appeal-on-additional-taxes-in-finland-for-2007.aspx 
 
Fortum
Fortum is a leading clean energy company which provides its customers with electricity, heating and cooling as well as smart solutions to improve resource efficiency. We want to engage our customers and society to join the change for a cleaner world. We employ some 8,000 professionals in the Nordic and the Baltic countries, Russia, Poland and India, and already 64% of our electricity generation is CO2 free. In 2015, our sales were EUR 3.5 billion. (NASDAQ HELSINKI: FUM1V). www.fortum.com