Stock exchange release

Swedish Court of Appeal rules against Fortum in income tax case regarding the years 2009-2012

30 June 2017, 17:00 EEST


The Court of Appeal in Stockholm, Sweden, has on 30 June 2017 ruled against Fortum related to Fortum's income tax assessments in Sweden for the years 2009-2012. Due to the decision of the Court of Appeal, Fortum will book a tax cost of 1,175 MSEK (EUR 123 million) in the second quarter 2017 results. The booking will not have any cash flow effect for Fortum, as the additional taxes and interest have already been paid in 2016.

The case concerns Fortum’s right to deduct intra-group interest expenses in Sweden in the years 2009-2012. Fortum restructured its operations and reallocated loans in 2004-2005 to ensure future operations. Even though these reallocations did not impact Fortum's tax base in Sweden, the Swedish tax authorities considered that the Swedish interest deduction limitation rules were still applicable in Fortum’s case.

"We do not agree with the court's decision and we will apply for the right to appeal from the Supreme Administrative Court", says Reijo Salo, Fortum's Vice President, Corporate Tax.

Fortum Corporation
Måns Holmberg
Acting Head of Investor Relations and Financial Communications

Further information:
Reijo Salo, VP, Corporate Tax, tel. +358 50 452 4443

Read more:
Fortum's Interim Report January-March 2017, Note 20: Legal actions and official proceedings
Fortum's tax footprint 2016

Nasdaq Helsinki
Key media

Fortum is a leading clean-energy company that 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 Baltic countries, Russia, Poland and India, and 62% of our electricity generation is CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on Nasdaq Helsinki.