KAMUX CORPORATION STOCK EXCHANGE RELEASE 18 June, 2018 at 8:00
AN ADDITIONAL TAX OF EUR 2.6 MILLION FOR KAMUX IMPOSED BY TAX ADMINISTRATION - COMPANY WILL APPEAL THE DECISION
Kamux has received a tax reassessment decision from the Finnish Tax Administration. According to the decision, Kamux is required to pay approximately EUR 2.6 million in additional taxes, tax penalties and late payment interests. Kamux considers the decision to be unfounded and will appeal against the decision. In accordance with the tax reassessment decision, Kamux will recognize the total tax liability of approximately EUR 2.6 million in full amount in its result for the second quarter of 2018.
Background to the decision
The decision is related to a tax audit carried out by the Finnish Tax Administration in 2016-2018 concerning Kamux Suomi Oy and the tax years 2012-2016. The main areas of the tax audit were value-added taxes of vehicles imported by third parties and withholding taxes of car couriers.
The Tax Administration's decision is to hold Kamux liable for taxes left unpaid by third parties. In Kamux's view, Kamux is not liable for the value-added taxes left unpaid by a) third parties who have sold vehicles to the company or b) other prior owners of those vehicles. Hence, the Tax Administration's decision to collect these unpaid value-added taxes along with related penalties and interests from Kamux is unfounded. In addition, the Tax Administration has changed its standing and deviated from a demand for rectification made by Kamux of its own initiative and approved by the Tax Administration, relating to the withholding taxes of car couriers. The debiting of the estimated taxation carried out by the Tax Authority in the tax reassessment decision is in the company's view incorrect.
Kamux to appeal against the decision
Kamux considers the decision of the Uusimaa Corporate Tax Office to be unfounded and will appeal the decision by submitting a claim for rectification to the Tax Rectification Board.
In its prospectus and in the section 'Near-term risks and factors of business uncertainty' of its interim reports, the company has stated that its tax burden may increase as a result of amendments to tax laws and their method of application or as a result of a tax audit. Kamux does not publish a short-term outlook. The tax reassessment decision has no impact on the medium-term targets published by the company.
Kamux Corporation
For more information:
Tapio Arimo, CFO
Tel. +358 40 829 6452
Kamux Corporation is a retail chain specializing in the sale of used cars and related integrated services that has grown rapidly. The first Kamux car showroom started its operations in 2003 in Hämeenlinna, Finland and the company currently has 42 car showrooms in Finland, eleven in Sweden and two in Germany. Since its founding, the company has sold more than 170,000 used cars, of which 40,957 were sold in 2017. Kamux's revenue reached EUR 454.9 million in 2017. In 2017, Kamux's average number of employees was 418 in terms of full-time equivalent employees. The shares of Kamux are listed on Nasdaq Helsinki.
www.kamux.com