Court rules in favour of Nokian Tyres
14 May 2018, 22:43 ( 5 Months ago) | updated: 15 May 2018, 11:10 ( 5 Months ago)
Nokian Tyres plc has received a positive ruling in the 2007-2010 tax dispute, according to a press release issued by the company.
The Administrative Court in the ruling completely overturned the decision of the Board of Adjustment to reassess the tax amounting to EUR 89.2 million and ordered the Tax Administration to pay Nokian Tyres EUR 40,000 as legal costs.
The ruling stays in force, if the Tax Recipients Services Unit does not apply for permission to appeal to the Highest Administrative Court in 60 days.
The company has recorded the tax reassessment decisions of EUR 89.2 million of the Board of Adjustment in full to its financial statement and result, said the release.
Adjustments to the financial reports will be done when the ruling of the Administrative Court is finalised.
The Large Taxpayers’ Office in 2012 to 2013 carried out a transfer pricing tax audit for 2007 to 2011, investigating if the intercompany transactions between Nokian Tyres plc and its subsidiaries were at arm’s length.
The company paid EUR 89.2 million additional taxes and punitive tax increases in 2007 to 2010 based on the tax reassessment decisions made by the Tax Administration. The company appealed against the decisions to the Administrative Court in January 2017.