Uponor receives taxation adjustment decisions for 2006–2009 –– ordered to pay €11.4 million
Uponor Corporation Stock exchange release 30 December 2011 15:20 EET
Further to the additional taxation decision concerning the year 2005, announced on 23 December 2011, the tax authorities have notified Uponor Group’s Finnish subsidiary, Uponor Business Solutions Oy, of taxation adjustment decisions made for the years 2006–2009. These oblige the company to pay €11.4 million in taxes and penalties, due in February 2012.
Most of the sum demanded by the tax authorities, i.e. €7.6 million, consists of taxes while the remaining €3.8 million represents surtaxes and interest on delayed payments. Uponor will book the interest and surtaxes in its financial statements for 2011.
The decision announced on 23 December obliged Uponor to pay €3.2 million.
Maintaining its earlier view, Uponor intends to appeal against the decision and submit a request for rectification to the Board of Adjustment.
The additional taxation and taxation adjustment decisions are based on a tax audit for the years 2004–2007, performed on some Uponor companies in Finland in the summer of 2008. The dispute mainly pertains to market-based transfer pricing of the company’s internal service charges. These are related to Uponor Business Solutions Oy, which provides services associated with the implementation, maintenance and development of the Group's common information systems. In this context, Uponor has applied the OECD's transfer pricing guidelines, charging a service fee to those companies that have actually adopted such systems, not to all Group companies as the tax authorities suggest.
For further information, please contact:
Riitta Palomäki, CFO, tel. +358 20 129 2822
Vice President, Communications
Tel. +358 20 129 2852
NASDAQ OMX - Helsinki
Uponor is a leading international provider of plumbing and indoor climate solutions for residential and commercial building markets across Europe and North America. In Northern Europe, Uponor is also a prominent supplier of infrastructure pipe systems. Uponor offers its customers solutions that are technically advanced, ecologically sustainable, and safe and reliable to own and operate. The Group employs approx. 3,200 persons, in 30 countries. In 2010, Uponor's net sales totalled €750 million. Uponor Corporation is listed on NASDAQ OMX Helsinki in Finland. http://www.uponor.com.