Borealis Challenges Backdated Finnish Tax Bill

Borealis is calling "unjustified" plans by Finnish tax authorities to charge the company back taxes totalling €281.7 million, including penalties for late payment and interest, pertaining to a position in the 2008 tax return of subsidiary Borealis Technology.

In an appeal to the Finnish tax authority's Board of Adjustment, the Vienna, Austria-based plastics and fertilizer producer said it will also ask for a suspension of the payment, even if it would not have a material adverse impact on its ability to conduct its business operations in future.

Finnish tax officials are said to be treating the licensing of technology for Borealis' "Borstar" production technology as the sale of a business. The company's chief financial officer, Mark Tonkens said "Borealis declares and pays taxes in line with applicable tax laws and principles. Clear and consistent taxation practices within the European Union are needed for international companies to ensure competitiveness and future growth."