Oslo, Norway – October 1, 2020: REC Silicon ASA (REC Silicon) has previously disclosed notices of reassessment from the Norwegian Central Tax Office (CTO) regarding tax returns for tax years 2009 through 2011. (See note 31 to the 2019 annual report for additional information https://epub.artbox.no/recsilicon/ar2019/76/)
REC Silicon received information from the Norwegian Tax Administration through legal counsel on September 30, 2020 that issues raised to deny deductions taken by REC Silicon during tax years 2009 through 2011 have been dropped. In addition, the Norwegian Tax Administration informed that after a thorough examination, also considering the elapsed time, they did not find a reason to move forward with other issues raised in the draft decision including the classification of capital inflows as equity deposits.
The resulting decrease in short-term liabilities of approximately USD 26.5 million, income tax benefit of approximately USD 21.9 million, and the reversal of interest expense of approximately USD 4.6 million will be reflected in the Company's third quarter 2020 financial results, which are scheduled to be released on Thursday October 29, 2020.
For further information, please contact:
James A. May II, Chief Financial Officer
Phone: +1 509 989 1023
Nils O. Kjerstad
Phone: +47 9135 6659
About REC Silicon
REC Silicon is a leading producer of advanced silicon materials, delivering high-purity polysilicon and silicon gas to the solar and electronics industries worldwide. We combine over 30 years of experience and proprietary technology with the needs of our customers, with annual production capacity of more than 20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on the Oslo Stock Exchange (ticker: REC), the Company is headquartered in Fornebu, Norway.
For more information, go to: www.recsilicon.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.