REC SILICON ASA Fornebu, Norway - July 12, 2017: REC Silicon ASA (REC Silicon) has previously disclosed notices of reassessment from the Norwegian Central Tax Office (CTO) regarding tax returns for tax years 2009 through 2011. (See note 31 to the 2016 annual report http://hugin.info/136555/R/2092887/791015.pdf)
REC Silicon received a draft decision dated June 30, 2017 from the CTO which disallows losses of NOK 7.7 billion in total (at 28 percent the tax would be approximately NOK 2.2 billion). The Company expects these amounts to be adjusted for group contributions and carry back of tax losses, which would result in the recognition of approximately USD 26 million in tax expense plus interest of approximately USD 4 million. This range of potential outcomes remains broadly unchanged from disclosures previously made by the Company.
The Company will oppose the draft decision by filing supporting assessments and presenting additional documentation. REC Silicon continues to believe that these losses are tax deductible and that the eventual outcome will be in the Company's favor. The CTO is expected to issue a final decision near the end of 2017. When a final decision is issued, any resulting tax is generally due two weeks after the decision.
The Company expects to challenge any adverse final ruling through the appeals process and will attempt to defer any potential payment until a final resolution has been reached.
The timing and amount of any potential outcome is subject to substantial uncertainty.
The resulting short-term liabilities of approximately USD 30 million, income tax expense of approximately USD 26 million, and interest expense of approximately USD 4 million, will be reflected in the Company's second quarter 2017 financial results, which are scheduled to be released on Thursday July 20, 2017.
For further information, please contact:
James A. May II, CFO
REC Silicon ASA
Phone: +1 509 989 1023
Email: james.may@recsilicon.com
Chris Bowes, Investor Relations
REC Silicon ASA
Phone: +1 509 793 8127
Email: chris.bowes@recsilicon.com
Nils O. Kjerstad
IR Contact Europe
Phone: +47 9135 6659
Email: nils.kjerstad@crux.no
About REC Silicon
REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gas to the solar and electronics industries worldwide. We combine over 30 years of experience and proprietary technology with the needs of our customers, and annual production capacity of more than 20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock Exchange (ticker: REC), the Company is headquartered in Fornebu, Norway.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: REC Silicon ASA via Globenewswire
