Tax surcharge of SEK 493 million quashed by the County Administrative Court

The background to this dispute is that Klövern requested reconsideration of the tax assessment for 2003 at the end of 2003, in connection with which Klövern requested a deduction of an additional SEK 5 billion. This deduction concerns a loss that the company made during the time it was an IT company.

 

The Tax Agency considered that Klövern was not entitled to this deduction and also considered imposing a tax surcharge of SEK 493 million. For this reason, Klövern withdrew its request for the deduction. Despite there no longer being any request for a deduction to take a position on, the Tax Agency imposed a tax surcharge of SEK 493 million.

 

The judgment of the County Administrative Court can be appealed against to the Supreme Administrative Court.

 

“We are very pleased that the county administrative court has drawn this conclusion. The judgment shows that our view was justified that the Tax Agency cannot behave in the way that it did. What remains now is to have our deduction of SEK 5 billion approved, says Klövern’s CEO Gustaf Hermelin.

 

Klövern has also submitted a renewed request for reconsideration of the request for a deduction of SEK 5 billion. The Tax Agency has not approved this deduction. However, no tax surcharge has been imposed. The issue of the deduction is at present pending consideration by the county administrative court. This is a separate proceeding from the matter now decided upon. The tax surcharge of SEK 493 million imposed by the Tax Agency has not been paid nor has it been expensed, but has been reported as a contingent liability.

 

“We realised that the Tax Agency did not have grounds for imposing a tax surcharge on Klövern. It is very gratifying that the county administrative court shares this view “, say Klövern’s tax advisor Börje Leidhammar, Wistrand advokatbyrå and Thomas Andersson, Deloitte.

Nyköping, 21 December 2007

 

Klövern AB (publ)

 

 

 

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

Caesar Åfors, Chief financial officer and vice-CEO, +46 155-44 33 02, +46 70 662 48 48, caesar.afors@klovern.se

 

Klövern is a real estate company with a local presence that actively develops properties in large Swedish cities. Klövern has ten geographical units: Borås, Karlstad, Kista, Linköping, Norrköping, Nyköping, Täby, Uppsala, Västerås och Örebro. As per 30 September 2007, the value of the properties totalled approximately

SEK 12.2 billion and the rental income on an annual basis was approximately SEK 1,337 million. The Klövern share is listed on OMX Nordic Exchange in Stockholm for medium-sized companies.

 

Klövern AB (publ), Box 1024, SE-611 29 Nyköping , Sweden* Tel +46 155-44 33 00, Fax +46 155-44 33 22.

Corporate registration no. 556482-5833 * Registered office: Nyköping * Website: kelly.corem.se