Norwegian aluminium company Norsk Hydro ASA has won a tax appeal, which means that the company will receive a tax reimbursement and interest of a total of around NOK 700 million.
In 2008 Norsk Hydro ASA realized an accumulated loss of approximately NOK 2 150 million related to refinancing of loans to subsidiaries. The loss was deducted in Hydro’s Norwegian tax return. In 2013, Norwegian Tax Authorities concluded that the loss was not deductible, and the associated tax was paid in the first quarter of 2014.
Hydro appealed the decision of the Norwegian Tax Authorities. In a decision of 13 April 2016, the Tax Appeal Board ruled in favor of Hydro. The decision will result in a tax reimbursement of approximately NOK 600 million, and approximately NOK 100 million in interest. The amounts will be included in the financial statements for Q1 2016 and are expected to be received in Q2 2016.
Source: Hydro / Norway Today