Dorel will pay its tax bill after the decisions of the Luxembourg court

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Dorel Industries Inc. claims that the Administrative Court of Luxembourg upheld a court ruling that one of Dorel’s subsidiaries owes US $ 64.2 million in taxes. Dorel CEO Martin Schwartz, seen in this May 28, 2004 file photo, says the company is disappointed with the move, but will comply with it. THE CANADIAN PRESS / François Roy

MONTREAL – Dorel Industries Inc. says the Administrative Court of Luxembourg upheld a court ruling that one of Dorel’s subsidiaries owes US $ 64.2 million in taxes.

As a result, the company declares that it has to pay a non-recurring cash balance of US $ 45.4 million to the Luxembourg tax authorities.

The tax charge relates to an internal reorganization of the company which took place in 2015.

Dorel CEO Martin Schwartz said the company was disappointed with the decision, but would respect it.

The company says the ruling will reduce its third-quarter earnings per share by US $ 1.90.

Dorel is expected to release its full third quarter results on November 5.

This report by The Canadian Press was first published on October 29, 2021.

Companies in this story: (TSX: DII.B)


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