(IC Companys A/S via Fibre2fasion.com)
The CBSA in Canada has performed a customs audit of the value for duty employed by IC Companys Canada Inc. when importing goods into the Canadian market.
In this connection the CBSA has concluded that IC Companys has employed a too low value for duty. Consequently, the CBSA has imposed IC Companys Canada Inc. to increase both its future value for duty as well as its value for duty with retrospective application for 4 years as from 14 September 2010.
The increase of the value for duty for the past 4 years leads to a non-recurring cost of DKK 15 million [$2.7 million] and accrued interest of DKK 4 million [$724,000]. Both items are fully tax deductible upon recognition of taxable income and have a deductible value of DKK 4 million. The costs will be recognised in the consolidated accounts for the first quarter 2010/11.
IC Companys does not agree with the ruling from the CBSA and expects to appeal the case to the relevant authorities in Canada.
It is expected that the above-mentioned costs may be contained in the Group’s guidance for the financial year 2010/11 with an estimated operating profit in the region of DKK 320-360 million.
