Kungsleden has received negative tax rulings
Kungsleden has today received negative tax rulings from the Stockholm Administrative Court of Appeal in cases to which Kungsleden is party. The Court found that Kungsleden is not to be permitted deductions for the impairment of lagerandelar (defined in Swedish law as a construction company´s shareholding in a property management company) in relation to external acquisitions made in the taxation years 2006-2008. The court also found that Kungsleden is not to be permitted deductions for the impairment of lagerandelar in relation to restructurings conducted by Kungsleden in the taxation years 2004-2006.
Kungsleden is of the opinion that the company has fully complied with the tax laws and practice in place when submitting each relevant tax return. Most of the transactions are very similar to the so called ”Steen and Ström-case” where the Stockholm Administrative Court of Appeal granted deductions in 2011. Consequently, Kungsleden has been of the opinion that deductions would be granted also in Kungsleden´s cases.
Kungsleden does not agree with opinion expressed made by the Administrative Court of Appeal in the current cases and intends to apply to the Supreme Administrative Court for leave of appeal. Therefore, Kungsleden will not at this time make any further provisions based on today´s rulings.
If the final outcome in all the cases concerning deductions of lagerandelar and restructurings were to be negative, an additional negative effect on equity of SEK 1,615 m and an additional tax payable of SEK 1,450 m would occur for Kungsleden. These effects on equity and liquidity are in line with what Kungsleden has previously communicated regarding the maximum negative effects of the cases in question.
For more information, please contact:
Anders Kvist, Deputy CEO and CFO Kungsleden | phone +46 8 503 052 11
Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden
Kungsleden AB (publ) 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 1 April 2014 at 5:00 p.m.
Kungsleden’s business concept is to own, manage and enhance properties in Sweden’s growth regions, and to generate sustainable high and stable returns. The focus on value creation is by satisfying customers’ needs for premises, managing and enhancing properties, and optimising the company’s property portfolio. Kungsleden has been quoted on Nasdaq OMX Stockholm since 1999.