Telenor Gets Favorable Court of Appeal Ruling in Unitech Wireless Tax Case

By Dominic Chopping

Telenor said Monday that the Court of Appeal has for the main part decided in the company's favor in a tax case concerning losses under guarantees for financing in its Indian subsidiary Unitech Wireless.

Telenor deducted the loss in its tax return for 2013 but the Norwegian tax office disallowed the deduction and a tax expense of 2.49 billion Norwegian kroner ($231.5 million) and interest of NOK166 million were recognized in its accounts and paid in 2019.

After an unsuccessful appeal to the tax authorities, Telenor appealed the ruling to the Oslo District Court, which ruled in favor of Telenor and allowed deduction for the losses which saw Telenor reverse the tax and interest expense in its 2022 accounts.

The government appealed the district court ruling but the Court of Appeal has ruled in favor of Telenor, but with the timing for recognition of the loss changed from 2013 to 2015, meaning the tax deduction will be slightly reduced due to the timing difference and declining tax rates.

Both the Norwegian government and Telenor have a right to appeal the ruling and the authorities aren't obliged to repay the tax and interest before there is a final enforceable ruling from the courts, Telenor said.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

June 12, 2023 02:20 ET (06:20 GMT)

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