The Tax Administration’s Appeals board has cancelled a huge demand for back-tax issued to the energy firm Fortum. The 136.4 million euro bill, which was due for the company’s Belgian subsidiary’s 2007 results, will now be ripped up.
Fortum said that the tax had been paid in Belgium, but the Finnish taxman argued that the firm’s profits should be taxed in Finland, where its head office is located.
Fortum appealed against the ruling, arguing that the Belgian profits should not be taxed twice.
The ruling complies with a judgement handed down by the Supreme Administrative Court in favour of companies who had engaged in what the tax authorities claimed is transfer pricing.