Borealis (Vienna / Austria; www.borealis.com) is challenging a Finnish back-tax assessment of EUR 281.7m for its local subsidiary Borealis Technology, dating back to 2008 and including penalties for late payment and interest. The polyolefins and fertilizer multinational player believes the claim is “unjustified.” In an appeal to the Finnish tax authority’s Board of Adjustment, Borealis said it will also ask for a suspension of the payment.

While the Vienna-based group said the amount claimed, “if in fact due” would not have a material adverse impact on its ability to conduct its business operations in future, it takes issue with the Finnish authority’s reassessment of the licensing of its “Borstar” production technology as the sale of a business. In a statement, chief financial officer Mark Tonkens said Borealis “declares and pays taxes in line with applicable tax laws and principles. Clear and consistent taxation practices within the European Union are needed for international companies to ensure competitiveness and future growth.”

At its founding in 1994 through the merger of the petrochemicals and polyolefins businesses of Finland’s Neste and Norway’s Statoil, Borealis was headquartered in Lyngby / Denmark, but had a strong presence in Finland. Its first use of the Borstar technology was in a 120,000 t/y PE plant at Porvoo / Finland. Along with employing the technology in its Borouge polyolefins projects in the United Arab Emirates, the group also licenses the process widely.