Klövern is appealing against tax decisions

The Tax Agency has, in a decision dated November 15, 2006, concerning reconsideration of income tax for 2003, rejected Klövern’s request for deduction for the loss of approximately SEK 5 000 million. The request for deduction is related to the divestment of the former subsidiary Adcore Stockhom AB. Klövern is going to appeal against the decision to the County Administrative Court.

 

The Tax Agency has, the same day as above, made decisions on reconsideration of income tax for 2002 and 2003, for the former IT business carried on under the name Adcore AB. These decisions mean that the Tax Agency is increasing Klövern’s tax assessment by SEK 20 million net, and that tax surcharges are being imposed on Klövern totalling SEK 17 million. Klövern will appeal against the decisions as such and against the imposition of tax surcharges to the County Administrative Court. The company will be granted a respite with payment of the tax surcharge until legal proceedings on the case have been concluded. The tax supplement is therefore for the time being only to be regarded as a contingent liability.

 

Nyköping, 16 November 2006

 

Klövern AB (publ)

Gustaf Hermelin, CEO, tel +46-(0)155-44 33 10, +46-(0)70-560 00 00, gustaf.hermelin@klovern.se

Anders Lundquist, CFO, tel +46-(0)155-44 33 20, +46-(0)70-528 43 33, anders.lundquist@klovern.se

Britt-Marie Einar, Corporate Communications Officer, tel +46-(0)155-44 33 12, +46-(0)70-224 29 35,

britt-marie.einar@klovern.se

 

 

Klövern is a real estate company with a local presence that actively develops properties in large Swedish cities. Klövern has geographical units in ten cities: Borås, Eskilstuna, Kalmar, Karlstad, Linköping, Norrköping, Nyköping, Uppsala, Västerås and Örebro. As per September 30, 2006, the value of the properties totals approximately SEK 6.6 billion and the rental income on an annual basis is approximately SEK 740 million. The Klövern share is listed on the Stockholm stock exchange, Nordic list, mid cap companies.

 

Klövern AB (publ), Box 1024, SE-611 29 Nyköping, Sweden. Tel +46-(0)155-44 33 00, Fax +46-(0)155-44 33 22. Company registration no. 556482-5833. Registered office: Nyköping. Website: kelly.corem.se