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Council for advance rulings divided on Skanska’s tax liability in Sandvik transaction

5/29/1997 12:00 AM CET
Press release

The Swedish Council for Advance Tax Rulings has issued its opinion on Skanska’s divestment of shares in Sandvik, the Swedish cemented carbide and specialty steels company.

PRESS RELEASE, MAY 29, 1997                               43/97

COUNCIL FOR ADVANCE RULINGS DIVIDED ON SKANSKA’S TAX LIABILITY IN SANDVIK TRANSACTION

The Swedish Council for Advance Tax Rulings has issued its opinion on Skanska’s divestment of shares in Sandvik, the Swedish cemented carbide and specialty steels company.

Of the eight Council members, four believe that Skanska should not pay capital gains tax on the net proceeds of the Sandvik share divestment, while four members hold the opposite view. Because the Chairman, who believed that capital gains tax should be paid, has the deciding vote, this was also the decision of the Council.

Skanska will now bring the matter before the Supreme Administrative Court, which is Sweden’s highest authority on tax issues of this type. A ruling is not expected until next year.

Danderyd, May 29, 1997

SKANSKA AB

Group Public Affairs

This and previous releases are also available on http://www.skanska.se