The Supreme Administrative Court announced its judgment in Essity’s dispute with the Swedish Tax Agency regarding the agency’s decision to impose additional taxes and tax surcharges for the years 2008 to 2012. As earlier announced by the company Essity has recognized a provision for and paid the disputed amount. The judgment will reduce Essity’s tax expense by approximately SEK 1.1billion ($123 million) in the 4Q 2018, as the company said in the press release received by Lesprom Network.
The case pertained to interest expenses on loans in a Group company that arose in connection with the relocation of operations to Sweden in 2004. The decision by the Swedish Tax Agency and the lower courts stipulating that interest expenses on the loans could not be deducted for the fiscal years in question was reversed by the Supreme Administrative Court and the taxes paid will be refunded to the company.
Essity is a leading global hygiene and health company. Essity used to be part of the SCA Group.
