The Administrative Court has announced its verdicts in several of Fabege’s ongoing tax cases. In its verdicts, the Administrative Court has ruled in favour of the Swedish Tax Agency’s position that Fabege should be taxed pursuant to the Swedish Tax Evasion Act. The verdicts do not give rise to any change in the total increase in taxable income.
The Administrative Court’s verdicts will be appealed by Fabege, which will request a respite for paying the tax. Fabege has already appealed several previous Administrative Court verdicts to the Administrative Court of Appeal. The matters to be heard by the Administrative Court of Appeal are currently subject to a stay of proceedings.
As at 7 March 2011, the total increase in taxable income under the decisions amounts to SEK 7,098m. The decisions have resulted in total tax demands of SEK 1,874m plus a tax penalty of SEK 164m, making a total demand of SEK 2,038m excluding interest payments. Fabege has previously been granted a respite for paying the tax until the courts have issued their verdicts.
Fabege considers that the Tax Agency and the Administrative Court have disregarded a number of important aspects and that the verdicts are therefore incorrect – an assessment shared by Fabege’s advisors on the matters. Fabege is of the opinion that it is highly probable that the Administrative Court of Appeal will amend the Administrative Court’s rulings to the benefit of Fabege. As in the past, no provision has been made in Fabege’s balance sheet, although the amount is being recognised until further notice as a contingent liability.
Fabege AB (publ)