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Hafslund (OSL:HNA) Hafslund has, as mentioned in the Annual Reports from 2006 and 2007, assumed that profit made in 2006 on the stock option element in convertible bonds in Renewable Energy Corporation ASA (REC) was tax-free in accordance with the exemption model. As it appears in note 25 of the Hafslund Annual Report from 2007, the Central Tax Office for Large Companies (Sentralskattekontoret for storbedrifter) (SfS) has given notice that the office is considering changing the tax charged for 2006 so that the entire profit is taxed at 28%. Hafslund has received a drafted office resolution where SfS, as signalled earlier, upholds full taxation. In the drafted office resolution SfS values each REC-share per the conversion time at the beginning of March 2006 at 81,50 NOK. This represents an increase from the notice given earlier at 65,00 NOK per share.
Hafslund is strongly opposed both to the alleged foundation for the tax liability and to the evaluation that appears from the drafted resolution. Hafslund will follow up any resolution in line with the draft by filing a complaint or by carrying out legal proceedings.
Should a resolution be made in line with the draft, Hafslund's taxable income for 2006 will increase with 2 150 million NOK. As a result of utilisation of tax positions in The Group, expected tax payable is 75 million NOK. Hafslund has not yet concluded the accounting process, but if the drafted resolution is realised it will lead to a negative effect on the results by approximately 600 million NOK in the accounts for 2008.
Hafslund ASA Oslo 5th November 2008
For further information please contact CFO, Gunnar Gjørtz, Tel: + 47 92 21 72 00 Investor Relations Officer, Lars Ove Johansen, +47 99 29 14 60 Financial Director, Tel +47 90 82 85 77
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