Fortum has received an income tax assessments of SEK 444 million (EUR 52 million) from the Swedish tax authority, STA, in addition to the SEK 1.7 billion (EUR 178 million) 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 to the STA decision.
STA claims that Fortum should pay additional income taxes for 2010 in Sweden for the reallocation of loans in Swedish subsidiaries due to Fortum's restructuring in 2005 and on the loans for acquiring shares in OAO Fortum (former TGC-10) in 2008. The claims are based on changes in tax regulations as of 2009. STA reassessed the business reasons behind Fortum's 2005 restructuring and the OAO Fortum acquisition as well as the tax rate of the Fortum finance entities. STA has not questioned the interest rate level of the loans charged to the Swedish entities.
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 2010, the total amount of Fortum’s income and other taxes amounted to approximately SEK 4 billion (EUR 420 million) in Sweden.
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.
In 2006 - 2010, Fortum paid SEK 8 billion (EUR 827 million) in income taxes in Sweden. In 2011, Fortum was one of the largest tax payers in Sweden and the second largest tax payer in Finland.
Fortum has until 2012 acquired operations in Sweden for SEK 75 billion (EUR 8.4 billion). Additionally during the last ten years, Fortum invested SEK 28 billion (EUR 2.9 billion) in new production, electricity grid upgrades and improvements that benefit customers in Sweden.
For additional information, please contact:
Reijo Salo, Head of Tax, Fortum Corporation, tel. +358 10 45 24443
Communications contact: Fredrik T Karlsson, Head of Communications, Scandinavia,
tel. +46 76 866 7725
Fortum's purpose is to create energy that improves life for present and future
generations. We provide sustainable solutions that fulfil the needs for low
emissions, resource efficiency and energy security, and deliver excellent value
to our shareholders. Our activities cover the generation, distribution and
sales of electricity and heat as well as related expert services.
Fortum's operations focus on the Nordic countries, Russia, Poland and the
Baltics. In the future, the integrating European and fast-growing Asian energy
markets provide additional growth opportunities. In 2011, Fortum’s sales
totalled EUR 6.2 billion and comparable operating profit was EUR 1.8 billion.
We employ approximately 10,800 people. Fortum’s shares are quoted on NASDAQ OMX
Further information: www.fortum.com