STOCKHOLM, Sweden, Dec. 19, 2003 (PRIMEZONE) -- On 15 December the Stockholm Tax Authority made a reassessment decision regarding the income-tax assessment for the year 2002 for one of Wihlborgs' subsidiaries, Wihlborgs Fastigheter i Stockholm AB. The decision entails the tax authority raising its assessment of taxable income by SEK 364 million, which means tax expenditure of SEK 101 million. In addition to this amount there will be interest of SEK 7 million and a tax surcharge of SEK 2 million.
The decision to raise Wihlborgs' taxed income is chiefly the result of the tax authority deeming a dividend of SEK 346 million paid by a subsidiary to Wihlborgs Fastigheter i Stockholm AB to be liable to tax. This is because the tax authority has reclassified Wihlborgs Fastigheter i Stockholm AB from a property-administration company to a company carrying out trade in properties. This is an assessment Wihlborgs does not share, thus Wihlborgs intends to appeal against the tax authority's decision in this regard.
Wihlborgs' understanding is that the decision will not lead to a payment, thus for the time being the tax authority's decision is being seen as a contingent liability.
Wihlborgs Fastigheter AB (publ)
Wihlborgs Fastigheter AB (publ) is one of Sweden's biggest real-estate companies, with real estate to a book value of SEK 19.4 billion. The real estate, which is concentrated on the Stockholm and Oresund regions, has a rental value on a twelve-month basis totalling SEK 2.1 billion, and a rentable area of 2 million square metres. The company has offices in Stockholm, Malmo, Copenhagen and Helsingborg. Wihlborgs' shares are listed on Attract40 on the Stockholm Stock Exchange's O-list.
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