Dorel subsidiary will have to pay taxes in Luxembourg
A subsidiary of Dorel Industries will owe nearly US $ 64.2 million in taxes to the Luxembourg tax authorities, the Luxembourg Administrative Court ruled on Thursday.
The Court thus confirmed on appeal the decision rendered by the country’s administrative court. The Dorel business will therefore have to pay a one-time residual cash balance of US $ 45.4 million.
“We are extremely disappointed with this judgment. Dorel has conducted its business in a completely transparent and legal manner, and has acted on the advice of its tax and legal advisers. Since this is a final decision of the Court, we will comply with this decision, ”said Martin Schwartz, President and CEO of Dorel, in a press release.
The Montreal-based company also announced that this judgment could have an impact of US $ 1.90 on earnings per share which is presented in its financial statements for the third quarter of 2021.
Dorel will release its third quarter results on November 5th.
Remember that the dispute concerned the taxation of the transfer of certain assets that had been carried out during an internal corporate reorganization in 2015.