Dorel Industries Inc. says the Luxembourg Administrative Court has confirmed a tribunal ruling that one of Dorel’s subsidiaries owes US$64.2 million in tax. Dorel CEO Martin Schwartz , shown in this May 28, 2004 file photo, says the company is disappointed by the decision, but will abide by the ruling. THE CANADIAN PRESS/Francois Roy
October 29, 2021 - 7:53 AM
MONTREAL - Dorel Industries Inc. says the Luxembourg Administrative Court has confirmed a tribunal ruling that one of Dorel’s subsidiaries owes US$64.2 million in tax.
As a result, the company says it must pay a one-time remaining cash balance of US$45.4 million to Luxembourg tax authorities.
The tax charge is related to an internal corporate reorganization that took place in 2015.
Dorel CEO Martin Schwartz says the company is disappointed by the decision, but will abide by the ruling.
The company says the judgment will reduce its third-quarter earnings per share by US$1.90.
Dorel is expected to release its full third-quarter results on Nov. 5.
This report by The Canadian Press was first published Oct. 29, 2021.
Companies in this story: (TSX:DII.B)
News from © The Canadian Press, 2021