Essity intends to apply for leave to appeal at the Supreme Administrative Court against the SEK1.2bn tax case decision.
Last Friday, Essity announced that the Administrative Court of Appeal in Stockholm had confirmed the decision of the Swedish Tax Agency to impose additional taxes and surcharges on the company for the years 2008 to 2012. According to Essity, the tax payment charge amounts to SEK1.2bn and pertains to interest expenses on loans in a group company that arouse in connection with the relocation of operations to Sweden in 2004.
The decision of the Administrative Court of Appeal will reportedly have no impact on Essity's earnings or cash flow for 2017. The company had already recognised a provision and paid the disputed amount, Essity explained.
The Administrative Court of Appeal, through its decision of 16 June, had upheld the tax case ruling of the Administrative Court in Stockholm from March last year. Essity said it intended to apply for leave to appeal at the Supreme Administrative Court against the SEK1.2bn tax case decision.
Essity is the tissue, hygiene and health products business spin-off of the SCA group. The company has been listed on the Nasdaq stock exchange in Stockholm on 15 June.