Jump to content

You are now visiting the Sandvik Group website in English. Would you like to switch to another language site with selected content translated?

Sandvik clarifies: no increased tax cost

In 2005, Sandvik AB conducted a reorganization of the ownership and management of intellectual property rights.

All Swedish-owned patents and brands were transferred to Sandvik Intellectual Property AB (the IP company). The reason for the reorganization was the need to streamline intellectual property operations into a separate company, which emphasizes the considerable values of intellectual property rights and generates operative gains.

The Swedish National Tax Board has approved Sandvik's income tax return for 2005. The National Tax Board subsequently appealed its own tax ruling through the Public Attorney with regard to the effect of the reorganization set forth above. If the appeal is approved, it would not impact Sandvik's earnings. If this is the case, the additional tax expense of SEK 5 billion would, according to Sandviks opinion, correspond to the taxable value of amortizations in the IP company. If Sandvik's view is accepted by the court, it would entail a reduction in Sandvik's tax expense of approximately SEK 5 billion, which will be taken up as revenue in the Group when the Court order has gained legal force.

Sandviken, 9 January 2008

Sandvik AB; (publ)

We would like your consent

Sandvik and our vendors use cookies (and similar technologies) to collect and process personal data (such as device identifiers, IP addresses, and website interactions) for essential site functions, analyzing site performance, personalizing content, and delivering targeted ads. Some cookies are necessary and can’t be turned off, while others are used only if you consent. The consent-based cookies help us support Sandvik and individualize your website experience. You may accept or reject all such cookies by clicking the appropriate button below. You can also consent to cookies based on their purposes via the manage cookies link below. Visit our cookie privacy policy for more details on how we use cookies.