Tax settlement removes contingent liability of SEK 510 million
12/14/2004 3:00 AM EST
NCC Property Development and the German tax authorities have reached an agreement that will exempt NCC from exposure to a tax risk of SEK 510 million.
The dispute traces its roots to properties in Germany that was owned by Dutch subsidiaries of NCC Property Development during the early 1990s and which subsequently became subject to a tax audit.
In connection with this tax audit, the German tax authorities directed claims for taxes in an amount of SEK 431 million against the Swedish Parent Company – NCC Property Development AB – and of SEK 129 million against the foreign subsidiaries, making a total of SEK 560 million.
NCC decided to appeal against the tax claim and simultaneously posted a contingent liability in an amount of SEK 510 million, plus a provision of SEK 50 million, which it regarded as sufficient to cover the actual tax claim.
As a result of the agreement with the German tax authorities, NCC can reduce its tax risks by SEK 510 million and its contingent liabilities by a corresponding amount.
For further information, please contact:
Ulf Thorné, Press Relations Manager, NCC Group, +46 585 523 46, +46 70 214 77 27