TDC Appeals Ruling of October 19, 2004, in Talkline Goodwill Valuation Tax Case
26 11월 2004 - 7:23PM
PR Newswire (US)
TDC Appeals Ruling of October 19, 2004, in Talkline Goodwill
Valuation Tax Case COPENHAGEN, Denmark, Nov. 26
/PRNewswire-FirstCall/ -- TDC appeals the ruling from the National
Assessment Council of October 19, 2004, regarding the valuation of
goodwill in Talkline. The ruling of The National Assessment Council
values this goodwill at DKK 3.6bn, which is significantly less than
the DKK 6.3bn according to TDC's opinion. Background On August 19,
2003, the National Assessment Council approved that the goodwill
created in the restructuring of Talkline in 2000 was tax deductible
under Danish joint taxation. On October 19, 2004, the National
Assessment Council determined the market value of this goodwill to
be DKK 3.6bn, compared with the TDC valuation of DKK 6.3bn. TDC
appeals the ruling from the National Assessment Council TDC is of
the opinion that the valuation from the National Assessment Council
in a number of areas has been made on the background of too
negative assumptions, assessments and expectations. Furthermore TDC
assesses that a positive result could be expected from a ruling in
the Danish National Tax Tribunal. Therefore TDC today has decided
to appeal the ruling from the National Assessment Council. A
decision in the appeal case can take up to two years. The impact of
the decision on TDC's results for 2004 The decision of the National
Assessment Council results in an additional tax payment for TDC of
approx. DKK 0.4bn to be paid during 1H 2004. TDC's appeal does not
have a delaying effect on this payment. As mentioned in the Annual
Report 2003 the accounting of goodwill in Talkline is based on an
accounting estimate and hence subject to some uncertainty. Because
of this, and in accordance with TDC's accounting principles, a
provision was made to cover this uncertainty. The provisions more
than cover the mentioned tax payment why the decision will not have
a negative impact on TDC's results for 2004. For further
information please contact TDC Investor Relations at +45 3343 7680.
TDC is a Danish-based provider of communications solutions with
significant presence in selected markets in Northern and Central
Europe. TDC is organized as six main business lines; TDC Solutions,
TDC Mobile International, TDC Switzerland, TDC Cable TV, TDC
Directories and TDC Services. TDC was privatized in 1994 and the
shares are held by individual and institutional shareowners
primarily in Europe and USA. TDC A/S, Noerregade 21 0900 Copenhagen
C DK-Denmark http://www.tdc.com/ DATASOURCE: TDC A/S CONTACT: TDC
Investor Relations, +45-3343-7680 Web site: http://www.tdc.com/
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