STOCKHOLM, Sweden, Oct. 20, 2005 (PRIMEZONE) -- AB Lindex has won an additional tax case in the County Administrative Court. The tax case is relating to the income tax assessments for the fiscal years 1998 and 2000-2002, regarding tax deduction for losses in Lindex's German operation. The judgement means that Lindex is granted permission to make a deduction for Group contributions amounting to SEK 485M. The tax authority has the option to appeal the decision.
Lindex has been operating in Germany since 1998 through its subsidiary, Lindex GmbH. The German operation has incurred losses which have been covered by the parent company, AB Lindex. It is for these losses that Lindex has claimed a deduction.
Lindex has also claimed a tax deduction totalling SEK 250M for the income tax assessments relating to the fiscal years 2005 and 2006. Lindex is awaiting a decision by the National Tax Board relating to these tax assessment.
The fiscal value of the deductions will have a positive effect on the company's profit after tax and its cash flow.
An examination of how the tax deductions can be utilised will be made when the judgement has become legally binding.
Lindex is a fashion group with over 330 stores in Sweden, Norway, Finland, Germany and Estonia. Lindex business areas are Lingerie, Ladies Wear and Children's Wear. For further information about Lindex see www.lindex.com.
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