Monday 8 July 2013
French tax case settled in Kingfisher's favour
Kingfisher plc, Europe's largest home improvement retailer, today confirms that the Conseil d'Etat, France's ultimate court, has considered an outstanding tax case dating back to 2003 and found in Kingfisher's favour. There is no impact on Kingfisher's cash position from the decision as a full refund of the tax and associated repayment supplement had already been made in 2009 following a previous successful hearing. However, this decision finally removes any uncertainty over the position and will therefore result in an exceptional credit of around £145 million being recognised in this year's earnings.
Ends
Notes to editors
The tax case dates back to 2003, the time of the demerger of Kesa Electricals plc (now Darty plc) from Kingfisher plc. Kingfisher plc paid a one-off tax charge, to the French government, triggered by the demerger, pending clarification of the technical position. As a result, an exceptional tax charge was recognised against earnings for the 2003/4 financial year.
Kingfisher subsequently appealed the decision through the French courts and in 2009 was successful in obtaining a full cash refund of the tax paid plus repayment supplement which in total amounted to €169 million. However, the case was referred to the Conseil d'Etat by the French government and so, pending this final decision, the associated exceptional credit has not been recognised in earnings to date.
Enquiries
Investors 020 7644 1029
Media 020 7644 1030
