Nokian Tyres will not pay extra tax in Finland
At the end of the penultimate — beginning of last year, Finnish officials obliged representatives of Nokian Tyres to pay an additional tax, which in monetary terms exceeded 100.3 million euros. This decision was made after the results of the 2007-2010 reporting years were reevaluated.
The additional fee was imposed by the state tax administration. However, the company's representatives did not agree with this turn of events and filed an appeal. Having reviewed the submitted documents, the special council dealing with issues related to major taxpayers overturned the tax authority's decision and sent the case for further development.
The purpose of further investigation of this issue is to determine whether the transactions concluded between the subsidiaries and the parent company Nokian Tyres were based on market prices or whether there was a special underestimation of value in order to reduce the tax amount.
Initially, the tax authority considered the pricing to be non-market and ordered the payment of taxes on the income of Russian subsidiaries of the company. Currently, Nokian Tyres, considering the cancellation of the decision to pay additional taxes, expects a refund of 43 million euros already received by the Finnish tax authorities.
The additional fee was imposed by the state tax administration. However, the company's representatives did not agree with this turn of events and filed an appeal. Having reviewed the submitted documents, the special council dealing with issues related to major taxpayers overturned the tax authority's decision and sent the case for further development.
The purpose of further investigation of this issue is to determine whether the transactions concluded between the subsidiaries and the parent company Nokian Tyres were based on market prices or whether there was a special underestimation of value in order to reduce the tax amount.
Initially, the tax authority considered the pricing to be non-market and ordered the payment of taxes on the income of Russian subsidiaries of the company. Currently, Nokian Tyres, considering the cancellation of the decision to pay additional taxes, expects a refund of 43 million euros already received by the Finnish tax authorities.