AMSTERDAM, The Netherlands – In reaction to a recent publication in El Pais and other newspapers in Europe, D.E. MASTER BLENDERS 1753 N.V. (“DEMB”) confirms that it has a pending dispute with the Spanish tax authorities, but NOT related to any fraudulent activities, as wrongfully suggested in publications earlier today.
D.E MASTER BLENDERS 1753 N.V.’s (“DEMB”) business principles ensure that DEMB tax policies and those of its subsidiaries always comply with all national and European tax regulations. DEMB believes that in April 2010 the Spanish tax office (Inspeccíon de Hacienda) has wrongfully ruled that DEMB should be denied certain tax deductible expenses.
DEMB has initiated legal proceedings in May 2012 in which the company requested the National Appellate Court (Audiencia Nacional) to review and set aside the ruling of the Spanish tax office. Nevertheless, pursuant to
DEMB’s strict compliance policy, DEMB has paid and secured all taxes in relation to this matter.
At this time the legal proceedings are pending before the National Appellate Court. The ruling of the Spanish tax office is therefore not final. We are confident the National Appellate Court will find that DEMB’s tax deduction is fully in line with Spanish tax regulations.
DEMB has published this pending tax case in its 20F filing and in its 1F filing of 2012 stating the following:
Spanish tax case — In October 2009, the Spanish tax administration upheld a challenge made by its local field examination against tax positions taken by the Groups Spanish subsidiaries. In November 2009, the Group filed an appeal against this claim with the Spanish Tax Court. In April 2010, the Spanish Chief Inspector upheld a portion of the claim raised by the Spanish tax authorities. The Group appealed to the Tribunal Economico Administrativo Central (TEAC). At the end of March 2012, the TEAC ruled in favor of the Tax Administration with respect to the audit for fiscal years 2003-2005. The Group continues to dispute the challenge and will continue to have further proceedings with the Spanish tax authorities regarding the issue. At the end of fiscal year 2012, the matter is now at the level of the National Appellate Court (Audiencia Nacional). In June 2011, the Spanish tax administrations local field office examination made similar challenges against tax positions for the years ending July 1, 2006 to June 27, 2009 taken by the Groups Spanish subsidiaries. The Group filed an appeal against this claim with the Spanish Tax Court (TEAC). The Group believes it is adequately reserved for the challenges made by the Spanish tax administrations local field examination.
Source: press release D.E MASTER BLENDERS 1753
