Comment on Supreme Administrative Court tax rulings available on Kungsleden’s website
Press Release 3 June 2009
Listed Swedish property company Kungsleden AB (publ) published its comment on how it views the potential effects of the Supreme Administrative Court’s tax rulings today. The following questions and answers have been uploaded to Kungsleden’s website, www.kungsleden.se. What has happened? On 29 May 2009, the Swedish Supreme Administrative Court announced three advance rulings that appear to significantly change current case law from the Administrative Court of Appeal, the Council for Advance Tax Rulings and the Supreme Administrative Court. How do the Supreme Administrative Court’s rulings affect Kungsleden? The Supreme Administrative Court’s rulings cover a number of transactions, none of which relate to Kungsleden. However, Kungsleden has previously conducted transactions, which in some respects resemble those that have just been subject to scrutiny. What are you doing as a result of the Supreme Administrative Court’s rulings? We’re analysing the rulings now alongside external experts to clarify their potential impact on Kungsleden. As soon as our analysis is complete, we will be providing more information, although by no later than at the time of our quarterly report on 19 August 2009. What could be the financial effects for Kungsleden? We can’t comment on them until our analysis is complete. The rulings may affect a number of specific transactions completed in 2004-2006. There’s been some talk about tax evasion, is this something Kungsleden has been involved in? We have no intention other than to observe the laws that apply. We distance ourselves firmly from the notion of tax evasion. Kungsleden’s judgment is that we have been observing the laws and established practice in place at the time of these transactions, in the form of a number of advance rulings and rulings by the Administrative Court of Appeal, the Council for Advance Tax Rulings and the Supreme Administrative Court. And this view is shared by external experts. When did this type of deal cease? Clarity was created on 17 April 2008 through the introduction of a legal block preventing the type of transaction the Supreme Administrative Court has now considered. We think this clarity is a good thing. What are you telling your shareholders and investors? We think it’s regrettable that the authorities’ handling of this process has taken as long as several years. It’s a big source of uncertainty for shareholders, investors and other stakeholders. We will be providing information as soon as we have it. Kungsleden discloses the information in this press release according to the Swedish Securities Markets Act and/or the Swedish Financial Trading Act. The information was provided for public release on 3 June 2009 at 7:30 p.m.