The Supreme Administrative Court of Finland has ruled with a decision given on August 15, 2003 that Jaakko Pöyry Group Oyj's subsidiary Electrowatt Infra AG is not such a controlled foreign company as defined in the Controlled Foreign Company (CFC) tax legislation.
Jaakko Pöyry Group Oyj has stated in the Notes to the Financial Statements for the financial year 2002 as follows:
"In its decision dated November 23, 2000, the Tax Office for Major Corporations concluded that the Jaakko Pöyry Group's Swiss subsidiary Electrowatt Infra AG (former Electrowatt Engineering AG) is not subject to the Controlled Foreign Company -legislation (CFC-legislation). As a result of this decision, EUR 1.5 million has reduced the Group's taxation annually year 2000-2001. The tax agent in the Tax Office for Major Corporations has made an appeal concerning the decision. The appeal was dismissed on December 11, 2001. The tax agent has made an appeal against this decision to the Supreme Administrative Court dated January 28, 2002 to which Jaakko Pöyry Group Oyj has on April 24, 2002 given its response."
The decision made by the Supreme Administrative Court on August 15, 2003 confirms the earlier decision made by the Administrative Court of Helsinki. The decision is final and no appeal is allowed. In practical terms the decision confirms the tax treatment of the Jaakko Pöyry Group informed in the above referred Notes to the Financial Statements 2002.
JAAKKO PÖYRY GROUP OYJ
Erkki Pehu-Lehtonen
President and CEO
Teuvo Salminen
Deputy to President and CEO