By Adriano Marchese
Oersted AS said Tuesday that it will appeal a decision by Danish tax authorities to be taxed in Denmark on its British offshore wind farms for the years 2015 and 2016.
The Danish power company said the Danish Tax Agency has decided that Oersted has to pay 5.1 billion Danish kroner ($817.1 million) plus interest of DKK1.5 billion.
According to the decision, the company is to be taxed in Denmark on the full future value of its two offshore wind farms, Walney Extension and Hornsea 1, "despite the fact that they are developed, owned, and operated by British subsidiaries of the Oersted group and are already taxed in the U.K.," Oersted said.
The company said it disagrees with the decision and will appeal it with the Danish Tax Appeals Agency, and added that it will take steps to ensure that Danish and U.K. tax authorities initiate negotiations to avoid double taxation.
"As early as 2015, we asked the Danish and U.K. tax authorities to clarify the taxing rights between the two countries, so that the offshore wind farms would not be taxed twice. However, the Danish tax authorities broke off negotiations and haven't since wanted to reopen them," Chief Financial Officer Marianne Wiinholt said.
Oersted said its net present value might be reduced by DKK4 billion if the final decision leads to an increase in Danish taxation.
Write to Adriano Marchese at email@example.com
(END) Dow Jones Newswires