Nokian to Appeal Additional Tax Bill - Tire Review Magazine

Nokian to Appeal Additional Tax Bill

Nokain Tyres is appealing a tax adjustment for 2007-2010 that requires the tiremaker to pay an extra 87 million euros. The adjustment includes an additional 55 million euros in additional taxes and 32 million in punitive taxes that must be paid by January 2016, Tyres and Accessories reported.

Nokian described the tax adjustment decision as “unfounded” and is appealing against the decision, T&A said. If the claim does not lead to annulment of the tax decision, Nokian’s corporate tax rate is expected to rise in the next four years, from 17% to 22%.

The tax adjustment was made after the Finnish Tax Administration’s Large Taxpayer’s Office carried out a transfer pricing tax audit investigating the intercompany transactions between Nokian Tyres plc and its subsidiaries. The tax administration found that Nokian’s Russian subsidiaries, which is technically considered as a “low risk contract manufacturer” rather than a modern factory in its own right. This has led to the Russian subsidiaries profits to be added to Nokian’s taxable income in Finland, T&A reported.

Nokian argues that “this leads to double taxation of income, which is contrary to existing tax treaty.”

The Finnish Tax Administration is still considering a reassessment decision for 2011, so Nokian may foot an even larger bill.

You May Also Like

Akebono names new regional sales manager

Erick Kinnunen joins Akebono with more than 40 years of experience in aftermarket sales, training and management.

Akebono-regional-sales-manager

Akebono Brake Corporation announced the addition of Erick Kinnunen as its new regional sales manager.

“We are thrilled to welcome Erick Kinnunen to the Akebono aftermarket team. His extensive experience and passion for the automotive industry make him a perfect fit for our mission to deliver top-quality brakes and exceptional service to our customers. We are confident that his expertise will help drive our growth and strengthen our presence in the market,” Tommy Rivera, senior director of Akebono Aftermarket Team at Akebono Brake Corporation said.

TEXA runs car diagnostic tool promotion

The promotion is active through Aug. 31.

TEXA-promotion
ATD opens regional distribution center in McDonough, Georgia

The new facility will support 22 distribution centers across Georgia, Florida, Alabama, Louisiana, Mississippi and Tennessee.

ATD-Georgia-Facility-Outside
GRI expands footprint in South America

GRI said its goal is not just to sell specialty tires, but to contribute to the region’s growth through its focus on sustainability.

GRI-team-South-America
Aperia’s Halo Tire Inflator accrues over 100 billion miles

The company said its Halo Tire Inflator has saved over 716,000 metric tons of CO2.

Aperia-Halo-Tire-Inflator
Other Posts
Electronic Specialties releases Pro Auto Test Lead Kit

The kit includes a full range of accessory test leads designed for automotive, heavy-duty and marine electrical troubleshooting

Electronic-Specialties-Test-Lead-Kit
Nokian Tyres produces first tire in new Romanian factory

The annual capacity of the Nokian Tyres Romania factory will be 6 million tires once the factory is fully operational.

Nokian-Tyres-Romania-factory
Rain Alliance launches the Rain RFID Training Program

The training program responds to the demand for certified practitioners who can offer vendor-agnostic skills.

Stock-Rain-Alliance-RFID-training
Wiygul Automotive Clinic to expand into Fauquier County, Virginia

The store is expected to open late this summer and will be the ninth location for the Wiyguls in the Washington Metropolitan area.

Wiygul-auto-clinic-expansion