Borealis has received a re-assessment decision from the Finnish tax authority for its Finnish subsidiary Borealis Technology Oy regarding the year 2008. The Finnish tax authority requests Borealis to pay an additional total amount of EUR 281.7 million comprising of taxes, late payment interest and penalties.Borealis believes the re-assessment to be unjustified and will appeal by filing a claim for adjustment with the Board of Adjustment of the Finnish tax authority. Furthermore, Borealis will also ask for a suspension of the payment pending the appeal.
The amount claimed, if in fact due, would not have a material adverse impact on Borealis' ability to conduct its business operations in the future.
"Borealis is a responsible company and operates according to its high ethical standards," comments Mark Tonkens, Borealis Chief Financial Officer. "Borealis declares and pays taxes in line with applicable tax laws and principles. Clear and consistent taxation practices within the European Union are needed for international companies to ensure competitiveness and future growth."
