195;rsted A/S Ørsted Appeals Against Decision From The Danish Tax Agency On Danish Taxation Of Two Offshore Wind Farms In Th...
December 01 2020 - 12:15PM
Dow Jones News
TIDMORSTED
Today, Ørsted received an administrative decision from the Danish
Tax Agency requiring Danish taxation of the company's British offshore
wind farms Walney Extension and Hornsea 1 in the tax years 2015 and
2016. The Danish Tax Agency's claim amounts to DKK 5.1 billion, plus
interest amounting to DKK 1.5 billion.
According to the decision, Ørsted is to be taxed in Denmark on the
full future value of the two offshore wind farms, despite the fact that
they are developed, owned, and operated by British subsidiaries of the
Ørsted group and are already taxed in the UK. The decision also
entails that the date of taxation is brought forward, as Ørsted,
according to the Danish Tax Agency, should be taxed on the future value
long before the offshore wind farms were built.
Ørsted disagrees with the decision and will appeal it to the Danish
Tax Appeals Agency. Furthermore, Ørsted will take steps to ensure
that the Danish and UK tax authorities initiate negotiations to avoid
Ørsted being subjected to double taxation, if necessary, by
referring the case to an independent arbitration panel.
Marianne Wiinholt, CFO of Ørsted, says:
"The Danish Tax Agency's decision is clearly based on a misconception of
the risks and value creation in Ørsted's business model for
developing, constructing, and operating offshore wind farms. As early as
2015, we asked the Danish and UK tax authorities to clarify the taxing
rights between the two countries, so that the offshore wind farms would
not be taxed twice. However, the Danish tax authorities broke off
negotiations, and haven't since wanted to reopen them."
If a final decision leads to an increase in Danish taxation, there may,
even with an offsetting effect in the UK, be a negative NPV effect of up
to DKK 4 billion due to differences in terms of amount and timing of
taxation between Denmark and the UK.
Ørsted will ask the Danish Tax Agency for a deferral of the tax
payment until the case has been decided.
At this stage, it has not been clarified whether the Danish Tax Agency
will seek to resume the tax assessment of other Ørsted offshore
wind farms.
The information provided in this announcement does not change
Ørsted's financial outlook for the 2020 financial year or the
expected investment level announced for 2020.
For further information, please contact:
Media Relations
Martin Barlebo
+45 99 55 95 52
Investor Relations
Allan Bødskov Andersen
+45 99 55 79 96
Ørsted's vision is to create a world that runs entirely on green
energy. Ørsted develops, constructs, and operates offshore and
onshore wind farms, solar farms, energy storage facilities, and
bioenergy plants, and provides energy products to its customers.
Ørsted ranks #1 in Corporate Knights' 2020 index of the Global 100
most sustainable corporations in the world and is recognised on the CDP
Climate Change A List as a global leader on climate action.
Headquartered in Denmark, Ørsted employs 6,120 people.
Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2019,
the company generated revenue of DKK 67.8 billion (EUR 9.1 billion). For
more information on Ørsted, visit orsted.com or follow us on
Facebook, LinkedIn, Instagram and Twitter.
Attachment
-- 01DEC2020__Company announcement_Ørsted appeals against decision from
the Danish Tax Agency
https://ml-eu.globenewswire.com/Resource/Download/5debb427-7184-4497-8a2e-da07a09c389d
(END) Dow Jones Newswires
December 01, 2020 12:00 ET (17:00 GMT)
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