In December 2017 the Icelandic Directorate of Internal Revenue ruled that Eimskipafélag Íslands hf. should pay income tax for operations of foreign subsidiaries, cf. note 24 in the Company’s Consolidated Financial Statements for year 2018. The Company appealed the ruling to the Internal Revenue Board and today it received a ruling from the board on the case where the board ruled against claims made by the Company.
With reference to information previously disclosed the estimated effect of the ruling in the income statement of Q1 2019 is a EUR 3.4 million income tax expense, but taking into account utilization of taxable losses the Company estimates a payment of EUR 0.5 million.
Eimskip, as a shipping operator in international markets, disagrees with this ruling of the Internal Revenue Board and will evaluate its options in relation to the ruling.