Judgement of the Tallinn Administrative Court concerning the sales tax refund claims of Selver AS and Kaubamaja AS

On 11 August 2014, Tallinna Kaubamaja Grupp AS released a stock exchange announcement, informing that its subsidiaries are requesting the return of sales tax paid in Tallinn during the period of 1 June 2010 to 31 December 2011 in the total amount of 3.27 million euros. Since the sales tax return claims refund of the subsidiaries of Tallinna Kaubamaja Grupp AS were not satisfied with the tax assessment of the Tallinn City Enterprise Board, the subsidiaries of Tallinna Kaubamaja Grupp AS have contested the tax decisions of the Tallinn City Enterprise Board in court.

On 24 July 2015, Tallinn Administrative Court rendered a judgement that partially satisfied the appeals of Selver AS and Kaubamaja AS against the tax decisions of the Tallinn City Enterprise Board. Tallinn Administrative Court took the position that the tax decisions must be annulled in the part of the designated sales tax on the sale of excise goods. Selver AS and Kaubamaja AS see reason to continue the dispute in the district court in the extent of the dismissed complaints.

Tallinna Kaubamaja Grupp AS will inform the stock exchange of any significant steps in the court action related to sales tax return claims according to the procedure specified in the rules and regulations of the stock exchange.