Ovako receives extended tax reassessment notice in Finland
As noted in the Ovako Annual Report, the tax authority in Finland has previously sought to limit the deductibility of interest expenses for the years 2010-2013. Ovako Finland Oy has now received a notice from the Finnish tax authority extending their claim to also include the years 2014-2016. In light of existing practices for interest deduction in Finland during this period, and after consulting with external tax lawyers, Ovako has again appealed the tax agency's claim.
The extend reassessment notice from the Finnish tax authority entails a demand for payment of approximately EUR 6.1 million (including interest and penalties), bringing the total claim to EUR 15.6 million. The demand relates specifically to interest expenses on loans from Ovako Finland Oy's Swedish parent company, Ovako AB (publ), which the tax authority deem non-deductible.
After consultation with external tax lawyers, Ovako disagrees with the extended reassessment from the Finnish tax authorities and has submitted an appeal. Until the appeal is settled Ovako will not be required to pay the demand.