The county administrative court has pronounced a judgment which means
that Klövern will receive approximately SEK 121 million in tax loss
carryforwards which derive from the period as an IT business. At the
same time, the county administrative court considers that Klövern is
not entitled to the tax loss carryforward of SEK 4,933 million
claimed for capital loss on divestment of the shares in Adcore
Stockholm."It is gratifying that the county administrative court has quashed
the Tax Agency's decision on the prohibited loan. The reasoning in
support of the judgment concerning the requested deduction of SEK
4,933 million gives us good hope that the administrative court of
appeal will grant the deduction", says Gustaf Hermelin, Klövern's
CEO.
On 15 November 2006, the Tax Agency made a decision after
reconsideration on income tax assessments for 2002 and 2003. This
decision concerns the period when the company was engaged in the IT
business under the name of Adcore AB. The Tax Agency considered,
among other things, that Klövern should be taxed for a prohibited
loan of approximately SEK 121 million and should pay a tax surcharge
of around SEK 12 million. The county administrative court does not
share the assessment of the Tax Agency that taxation should be
imposed for a prohibited loan and has accordingly quashed the Tax
Agency's decision including the tax supplement of SEK 12 million. The
county administrative court's judgment means that Klövern will
receive approximately an additional SEK 121 million in tax loss
carryforwards and the company's future tax expense will accordingly
decrease by almost SEK 32 million. The Tax Agency may appeal against
the judgment of the county administrative court to the administrative
court of appeal.
In the above-mentioned reconsideration decision, the Tax Agency
decided not to grant the company a deduction of SEK 4,933 million in
accordance with the request submitted by Klövern for the 2003 tax
assessment year. The claim for a deduction, which also concerned the
period when the company was engaged in the IT business, relates to
divestment of the subsidiary Adcore Stockholm AB. The county
administrative court rejects the company's appeal stating as reason
that the definitive divestment was made after introduction of a
prohibition of deductions for share losses. Klövern will appeal
against the judgment of the county administrative court to the
administrative court of appeal. The company considers that the
chances of the administrative court of appeal consenting to the
appeal are good.
In a previous judgment, the county administrative court imposed a tax
surcharge of around SEK 493 million for provision of incorrect
information concerning the claim for a capital loss deduction. The
Tax Agency has appealed against the judgment of the county
administrative court. A judgment from the administrative court of
appeal is expected during the first half of 2009.
Klövern has been represented by attorneys-at-law Thomas Andersson,
Deloitte, and Börje Leidhammar, Wistrand advokatbyrå.
Nyköping, 18 March 2009
Klövern AB (publ)
For further information, please contact:
Gustaf Hermelin, CEO, tel +46 155-44 33 10, +46 70-560 00 00,
gustaf.hermelin@klovern.se
Caesar Åfors, CFO and vice President, tel +46 155-44 33 02, +46
70-662 48 48, caesar.afors@klovern.se
Klövern is a real estate company committed to working closely with
customers to meet their needs of premises and services in Swedish
growth regions. Klövern has business units in ten cities/locations:
Borås, Karlstad, Kista, Linköping, Norrköping, Nyköping, Täby,
Uppsala, Västerås and Örebro. As at 31 December 2008, the value of
the properties totalled approximately SEK 11.9 billion and the rental
income on an annual basis is approximately SEK 1.4 billion. The
Klövern share is listed on Nasdaq OMX Nordic Exchange in Stockholm,
medium-sized companies.
Klövern AB (publ), Box 1024, SE-611 29 Nyköping, Sweden. Tel
+46 155-44 33 00, Fax +46 155-44 33 22.
Corporate registration no. 556482-5833. Registered office: Nyköping.
Website: www.klovern.se
