Schroder European Real Estate Investment Trust PLC - London and Johannesburg-listed property investor - Says its potential tax exposure in France is higher than earlier estimates. It has received a formal ’proposal for adjustment’ from the French tax authority, which includes a proposed penalty on any tax found ultimately due. Including interest and penalties, the potential exposure for the group is expected to be up to €14.2 million. Two weeks ago, Schroder European Real Estate had indicated that a possible exposure was between none and €12.6 million, excluding potential penalties. It said at the time that the French tax authority was proceeding with a tax audit related to its French tax structure.
‘Based on external tax and legal advice received at the time of implementation, and which has continued to be reviewed on an ongoing basis, the board continues to believe that an outflow is not probable and therefore no provision is recognised,’ Schroder European Real Estate says. Says it disagrees with the ’proposal for adjustment’ and will continue to contest its position.
Current stock price in London: 64.40 pence, down 1.5% on Wednesday
12-month change: down 9.3%
Current stock price in Johannesburg: R 15.21
12-month change: down 4.9%
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