XXL ASA's ("XXL" or the "Company") subsidiary XXL Sport & Villmark AS has today received a reassessment from the Norwegian tax authorities relating to the XXL group's international transfer pricing model. By the reassessment, the Norwegian tax authorities have increased the taxable income of XXL Sport & Villmark AS for 2015, 2016 , 2017 and 2018 with NOK 102 887 296 , NOK 180 562 285, NOK 211 226 125 and NOK 66 598 108, respectively, resulting in additional tax payable in Norway in the total amount of NOK 138 908 976 for these years exclusive reassessment interest. For the year 2019 the taxable income has been reduced with NOK 82 613 828. This matter has previously been disclosed as a potential tax exposure in the notes to the Company's consolidated financial statements and in its prospectus published earlier this year.
XXL does not agree with the reassessment and will also seek to mitigate the net tax effects for the XXL group by adjustments to taxable income in another jurisdiction through mechanisms in relevant double taxation treaties between Norway and such jurisdiction and which could lead to a refund from that jurisdiction. The Company accordingly expects that the net tax amount payable by the group will be reduced to a significantly lower amount than that set out above. The Company will in addition consider appealing the reassessment to the tax appeal board.
The Company is in dialogue with the Norwegian tax authorities regarding postponed payment of the Norwegian tax amount until the tax amount has been finally determined.
For further queries, please contact:
Investor Relations:
Tolle O. R. Grøterud
Tel: +47 902 729 59
E-mail:ir@xxlasa.com
Press:
Andreas Nyheim
Tel: +47 952 11 779
presse@xxl.no
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Tolle O. R. Grøterud, Investor Relations Officer of XXL ASA, on 15 June 2023 at 12.15 CET.
About XXL ASA: XXL is a leading sports retailer with stores and e-commerce in Norway, Sweden, Finland, Denmark and Austria. It is the largest among the major sports retailers in the Nordics. XXL pursues a broad customer appeal, offering a one stop shop experience with a wide range of products for sports, hunting, skiing, biking and other outdoor activities. XXL’s concept is to have the largest stores with the best prices and the widest assortment of products, focusing on branded goods.