RESIDUAL TAXES RELATED TO VALUE-ADDED TAX IMPOSED ON KESKO GROUP COMPANIES

With the decisions made by 2 November 2001, the Tax Office for Major Corporations has imposed value-added taxes and additional taxes, amounting to FIM 52,991,182 (about EUR 8.9 million), on Kesko Group companies. On the other hand, K-Plus Oy, a Kesko Group company, has in the Tax Office for Major Corporations a pending application which requests the return of the excessive value-added taxes paid by it.

The residual tax decisions now made by the Tax Office for Major Corporations concern the obligation to pay the value-added tax related to the discounts granted to consumers in the Plussa customer loyalty system. An appeal will be made against the residual tax decisions.

K-Plus Oy has a pending application in the Tax Office for Major Corporations concerning the deduction in taxation of the value-added tax relating to the discounts granted in the Plussa system in taxation. The application requests the return of the excessive value-added tax previously paid by K-Plus Oy – which has been imposed on other Group companies with the residual tax decisions now made. The amount to be returned on the basis of this application is expected to be at least as high as the residual tax amount concerned. K-Plus Oy expects to receive the tax authority’s decision in a short time.

Further information: Vice President Paavo Rönkkö, telephone +358 10 5311.

Kesko Corporation
Corporate Communications

Atte Kaksonen
Manager

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