INVESTMENT AB KINNEVIK: SWEDISH TAX AGENCY LODGES CLAIM FOR KINNEVIK TO PAY SEK 702m
(Thomson Reuters ONE) -
The Swedish Tax Agency informed Kinnevik today of its decision to demand that
Kinnevik pay withholding tax amounting to SEK 702m. As previously announced by
Kinnevik, the demand is a result of Kinnevik's acquisition of Emesco AB in 2009.
The Swedish Tax Agency considers that withholding tax should be lodged on an
intra-Group distribution of Kinnevik class A shares ("the Shares"), which
Kinnevik received in connection with the acquisition of Emesco. The distribution
of the Shares took place after Kinnevik's acquisition of Emesco, and Kinnevik
subsequently transferred the Shares to the sellers as part of the purchase
consideration for Emesco. The Swedish Tax Agency is of the opinion that Kinnevik
received the distribution on behalf of the sellers, and that the distribution is
withholding tax liable in accordance with Section 4, paragraph 3 of the Swedish
Withholding Tax Act.
Kinnevik vehemently refutes the Swedish Tax Agency's view that the Withholding
Tax Act is applicable to the distribution of the Shares. The Swedish Tax
Agency's interpretation is in Kinnevik's view contrary to the purpose of the
mentioned rule, which is to tax dividends on temporary shareholdings transferred
through loans or similar transactions in connection with the date of
distribution. In Kinnevik's case, Kinnevik acquired the Emesco shares in
September 2009 and continues to hold them as a wholly owned subsidiary of the
Group. Kinnevik is of the opinion that the Swedish Tax Agency has chosen to
interpret the Withholding Tax Act in a manner that is not compatible with the
wording or purpose of the Act, its legislative history or case law, and Kinnevik
strongly refutes the Swedish Tax Agency's demands. All of Kinnevik's legal
advisors confirm Kinnevik's view on the matter.
Since the Swedish Tax Agency's announcement of its preliminary opinion, Kinnevik
has responded to the Agency's audit memorandum on a number of occasions both
verbally and in writing. To support the company's views, two prominent and
independent tax experts have expressed their support for Kinnevik's opinion.
They have also stated that the Swedish Tax Agency's interpretation of the
Withholding Tax Act is not compatible with the legislator's purpose. However,
the Swedish Tax Agency has chosen to continue pursuing its claim against the
company without motivating its new interpretation of the Withholding Tax Act to
the company.
Kinnevik will certainly appeal the Swedish Tax Agency's decision, and also
request that the payment of tax be deferred since Kinnevik is resolute that the
Tax Agency's new interpretation of the Act is incorrect.
No provision will be made in the accounts for the tax exposure.
Kinnevik discloses the information provided herein pursuant to the Securities
Market Act (Sw. lagen om värdepappersmarknaden (2007:528)). This information was
submitted for publication at 8.00 CET on 25 October 2012
Forfurther information, please visitwww.kinnevik.se or contact:
Torun Litzén, Information and Investor Relations +46 (0)8 562 000 83
+46 (0)70 762 00 83
Mikael Larsson, Chief Financial Officer +46 (0)8 562 000 70
Kinnevik was founded in 1936 and thus embodies seventy-five years of
entrepreneurship under the same group of principal owners. Kinnevik's objective
is to increase shareholder value, primarily through net asset value growth. The
company's holdings of growth companies are focused around the following business
sectors; Telecom & Services, Online, Media, Microfinancing, Paper & Packaging
and Agriculture & Renewable energy. Kinnevik has a long history of investing in
emerging markets which has resulted in a considerable exposure to consumer
sectors in these markets. Kinnevik plays an active role on the Boards of its
holdings.
The Kinnevik class A and class B shares are listed on NASDAQ OMX Stockholm's
list for Large Cap companies within the financial and real estate sector. The
ticker codes are KINV A and KINV B.
Press release:
http://hugin.info/1114/R/1652211/533270.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Kinnevik via Thomson Reuters ONE
[HUG#1652211]
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2012 - 08:03 Uhr
Sprache: Deutsch
News-ID 196126
Anzahl Zeichen: 5143
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