Uponor's tax appeal for the years 2005-2009 rejected by Finland’s Board of Adjustment

Uponor Corporation             Stock exchange release                14 May 2013 11.48 EET


Uponor's tax appeal for the years 2005-2009 rejected by Finland’s Board of Adjustment

The Board of Adjustment of the Finnish Tax Authorities has decided to keep in force the earlier decision of the Tax Authority, requiring Uponor Business Solutions Oy to pay €14.4 million in back taxes and penalties in the case concerning the market-based transfer pricing of Uponor's internal service charges. The Board of Adjustment made its decision on 9 April 2013, by a vote of 3-2.

Late fees and tax increases accounted for €5.0 million of the sum. These were entered as costs in the financial statements for the year 2011. The additional taxes of €9.4 million paid due to higher taxable income were booked as receivables in the balance sheet. This decision by the Board of Adjustment will not lead to any new payments or payment returns at this stage, and will therefore not affect Uponor’s consolidated cash flow.

Uponor holds to its earlier view that its operations have been aligned with the current legislation and, within its internal operations, the company has observed the principles of market-based pricing. Uponor plans to place the issue before the administrative court and apply for a rectification of the Board of Adjustment’s ruling, as well as seeking a counter-rectification of taxable income in countries where the company should, according to the Board of Adjustment, have charged service fees.

In February 2012, Uponor also lodged an appeal on a €0.5 million transfer price issue concerning its parent company Uponor Corporation. This matter is ongoing.


Uponor Corporation

Tarmo Anttila
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. The Group employs approx. 3,000 persons, in 30 countries. In 2012, Uponor's net sales exceeded €810 million. Uponor Corporation is listed on NASDAQ OMX Helsinki in Finland. http://www.uponor.com.