The Belgian Court of Appeal in Antwerp has on 13 January 2016 decided in favour
of Fortum's appeal regarding the 2008 taxation of Fortum EIF NV, Fortum's
Belgian financing company. Based on legal analyses and supporting legal
opinion, Fortum has made no provisions for the tax in the financial statements.
The Belgian tax authorities (BBI) can appeal the decision to the Hof van
Cassatie (the Supreme Court).
The decision concerns Fortum's Belgian financing company, Fortum EIF NV, which
granted internal financing to a Swedish group company for financing an
acquisition in Russia. The Belgian tax authorities argued that Fortum EIF
should not benefit from the notional interest deduction (NID) regime in
Belgium. As Fortum EIF was established for genuine business reasons to manage
financing risks, the Court approved Fortum's appeal.
The income tax paid in Belgium for 2008 was EUR 36 million. Fortum has also
appealed the income assessments of Fortum EIF NV for years 2009, 2010 and 2011
in Belgium. Fortum's appeals concerning the years 2009–2011 are pending, and
Fortum expects the remaining years to follow the decision from the Court of
Appeal for 2008. In total, the taxes for cases for 2008–2011 amount to EUR 98
million. The additional taxes have already been paid by Fortum in 2012–-2015,
and they have been booked as receivables.
Reijo Salo, Vice President, Tax, tel. +358 50 45 24443
Fortum’s purpose is to create energy that improves life for present and future
generations. Fortum’s expertise is in CO2-free and efficient electricity and
heat production. The company also offers energy-related products and expert
services to private and industrial customers and energy producers. Fortum’s
main areas of operation are the Nordic and the Baltic countries, Russia and
Poland. In 2014, the annual sales (excluding the divested electricity
distribution business) totalled EUR 4.1 billion, and comparable operating
profit was EUR 1.1 billion. The company employs approximately 8,000 people.
Fortum’s share is listed on Nasdaq Helsinki. www.fortum.com