MONTREAL, Quebec - RTA, youth and nursery furniture specialist Dorel Industries Inc. said that a final tax decision handed down by the Luxembourg Administrative Tribunal late last month will impact its third quarter earnings by $1.90 per share.
The company will release its earnings for the third quarter ended Sept. 30 on Nov. 5.
The company appealed the initial Jan. 22, 2021 ruling the Luxembourg Administrative Tribunal, which said the one of the company’s subsidiaries owes 54.6 million euros in taxes, or $64.2 million.
The litigation dealt with taxation on the transfer of certain cash assets related to an internal corporate reorganization in 2015. The company says that the transfer of these cash assets was not taxable.
However, the court maintained its initial position, which means the company must pay a balance of 38.6 million euros or $45.4 million to Luxembourg tax authorities.
The company said in a statement posted on its website that it was disappointed in the judgment.
“Dorel conducted its affairs in a fully transparent and legal manner, acting with the advice of our tax and legal professionals,” said Martin Schwartz, Dorel president and CEO. “As this is a final decision of the court, we will abide by its decision.”