Norway's Supreme Court has ruled in favor of Norsk Hydro ASA with respect to tax deductability for losses incurred in 1990 on sale of shares in Norsk Hydro Canada Inc. to Norsk Hydro Danmark AS.
The judgement will result in a refund of taxes previously paid plus interest for a combined total of approximately NOK 550 million, according to a press release.
Of this amount an interest payment of approximately NOK 130 million will be recognized in Norsk Hydro’s accounts as taxfree interest income and approximately NOK 420 million will be recognized as a reduction in current tax expenses in the 2nd quarter of 2002.