Item 8.01. Other Events
On January 26, 2022, the Administrative Court of Appeal in Stockholm, Sweden
(the "Appellate Court"), issued a ruling in a tax dispute involving the Swedish
Tax Authority ("STA") and a subsidiary of FLIR Systems, Inc. ("FLIR"), which
Teledyne Technologies Incorporated ("Teledyne") acquired on May 14, 2021. The
Appellate Court generally affirmed a lower court ruling made in March 2020
resulting in FLIR being assessed an estimated aggregate amount of taxes,
penalties and interest of SEK 2.8 billion ($303.0 million). Teledyne does not
intend to appeal the decision and expects to pay the tax in the first quarter of
2022. Teledyne plans to continue supporting its businesses and over 500
personnel in Sweden.
Following the quarter ending September 2018, FLIR first disclosed a proposed tax
assessment by the STA for the tax year ending December 31, 2012, related to use
of tax credits applied against capital gains at one of FLIR's subsidiaries in
Sweden. In March 2020, FLIR received an adverse judgment from the First Instance
Court of Sweden regarding the STA's assessment. FLIR then appealed the decision
to the Appellate Court. On January 26, 2022, the Appellate Court generally
affirmed the lower court ruling.
Following Teledyne's acquisition due diligence and extensive analysis including
consultation with outside specialists, Teledyne recorded a liability for this
uncertain tax position that reflected the most likely outcome for this tax
matter.
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