The Administrative Court of Appeal rejects KlÃ¶vern's deductions of almost SEK 5 billion
The Administrative Court of Appeal has notified a judgment that entails that
KlÃ¶vern will not be granted almost SEK 5 billion of loss carryforwards deriving
from the time when the company was engaged in IT operations. However, a
deduction of SEK 107 million for conversion of claims into shareholders'
contributions was approved.
According to the judgment, the Administrative Court of Appeal rejects loss
carryforwards totalling SEK 4,947 million. This amount consists of two different
amounts SEK 4,933 million and SEK 14 million. Both relate to capital loss when
divesting subsidiaries in the tax assessment year 2003. The requests for a
deduction have not been recorded in KlÃ¶vern's accounts. The Administrative Court
of Appeal does not share the company's view that the divestment of shares with a
loss took place at a certain time, 6 December 2001, i.e. before the regulations
The Administrative Court of Appeal has now, in this judgment granted KlÃ¶vern a
deduction of SEK 107 million for conversion of claims to shareholders'
contributions. The value of the new loss carryforward will decrease KlÃ¶vern's
tax by SEK 28 million in the future. The amount will be reported as a tax claim
in KlÃ¶vern's books as at 30 September 2010.
The Company is considering an appeal against the Administrative Court of
Appeal's judgment in the part relating to the deduction for a capital loss of
SEK 4,947 million. KlÃ¶vern must decide upon that at the latest by 23 October
"It is regrettable that the Administrative Court of Appeal has decided in favour
of the Tax Agency. It is also surprising that civil law agreements are not given
the same meaning in taxation. Â A positive outcome would have meant lower tax in
the future. The negative outcome will thereby not affect us, our tax position is
the same as before. The company will not pay any tax to talk about during the
nearest years with present earning capacity", says KlÃ¶vern's CEO Gustaf
"We think that it is possible that the Supreme Administrative Court will grant
leave to appeal since the issue of what is a divestment of shares for tax
purposes involves important issues of principle", say the company's attorneys
Thomas Andersson and BÃ¶rje Leidhammar.
The Administrative Court of Appeal has in a previous judgment quashed the Tax
Agency's request for a tax surcharge of around SEK 493 million for incorrect
information relating to KlÃ¶vern's request for a capital loss deduction for the
2003 tax assessment year. However, the Tax Agency has appealed against the
judgment of the Administrative Court of Appeal to the Supreme Administrative
Court. The Supreme Administrative Court is expected to make a decision on
whether to grant leave to appeal or not during the autumn of 2010.
KlÃ¶vern's attorneys are Thomas Andersson, Deloitte, and BÃ¶rje Leidhammar,
NykÃ¶ping, 23 August 2010
KlÃ¶vern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, +46Â 155-44 33 10/+46 70-560 00 00,
Britt-Marie Einar, Finance and IR Manager, +46Â 155-44 33 12/+46 70-224 29 35,
KlÃ¶vern is a real estate company committed to working closely with customers to
meet their needs of premises and services in Swedish growth regions. KlÃ¶vern has
business units in ten cities: BorÃ¥s, Karlstad, Kista, LinkÃ¶ping, NorrkÃ¶ping,
NykÃ¶ping, TÃ¤by, Uppsala, VÃ¤sterÃ¥s and Ã–rebro. As at 30 June 2010, the value of
the properties totalled approximately SEK 12,1 billion and the rental income on
an annual basis was SEK 1.4 billion. The KlÃ¶vern share is listed on Nasdaq OMX
Nordic Exchange in Stockholm for medium-sized companies.
KlÃ¶vern AB (publ), Box 1024, SE-611 29 NykÃ¶ping, Sweden. Tel +46Â 155-44 33 00,
Fax +46Â 155-44 33 22. Corporate registration no. 556482-5833. Registered office:
NykÃ¶ping. Website: www.klovern.se
KlÃ¶vern rejection of deduction 2010-08-23:
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Source: KlÃ¶vern AB (publ) via Thomson Reuters ONE