Borealis to appeal against €281.7m tax bill

Borealis to appeal against €281.7m tax bill

Borealis has received a re-assessment decision from the Finnish tax authority for its Finnish subsidiary Borealis Technology Oy for the year 2008, for an additional payment of €281.7m comprising of taxes, late payment interest and penalties.

The company, which produces polyolefins, base chemicals and fertilizers, claims the re-assessment is unjustified and will appeal by filing a claim for adjustment with the Board of Adjustment of the Finnish tax authority.

Suspension

It will also ask for a suspension of the payment pending the appeal.

Kerstin Meckler, director communications, Borealis, told FoodProductionDaily.com this is the first time it has received such a claim.

This is about a re-assessment, we do not agree with the assessment of the Finnish tax authorities that the licensing of our Borstar technology was a sale of a business,” she said.

We will appeal by filing a claim for adjustment with the Board of Adjustment of the Finnish tax authorities and inform our clients about the outcome when possible.”

€150m R&D loan

Borealis received a €150m loan for further research and development (R&D) in polymer development from the European Investment Bank (EIB) in February last year.

The company said at the time, ‘advanced polymers’ referred to its value-added polymers through its material properties, longevity or safety aspects, citing its Borstar technology.

The EIB is supporting Borealis’s multi-annual investment programme at the company’s innovation headquarters in Austria and at other centres in Finland and Sweden.

The project focuses primarily in the area of advanced polymers and funds will finance the firm’s vocational training programme.

The loan was signed on 21 November in Luxembourg and the terms remain confidential between the borrower and the lender.

No impact on business operations

Meckler added if Borealis has to pay the additional €281.7m, the amount would not have a material adverse impact on Borealis’ ability to conduct its business operations in the future.

Borealis is a responsible company and operates according to its high ethical standards,” said Mark Tonkens, CFO, Borealis.

Borealis declares and pays taxes in line with applicable tax laws and principles. Clear and consistent taxation practices within the European Union are needed for international companies to ensure competitiveness and future growth.”

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