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Press release – Potsdam tax office casts doubt on REIT status - DKR will appeal all legal remedies
DEUTSCHE KONSUM REIT-AG
(Incorporated in the Federal Republic of Germany)
(Registration number: HRB 13072)
FSE Share Code: A14KRD
JSE Share Code: DKR
ISIN: DE000A14KRD3
LEI: 529900QXC6TDASMCSU89
(“DKR” or “the Company”)
PRESS RELEASE – POTSDAM TAX OFFICE CASTS DOUBT ON REIT STATUS - DKR
WILL APPEAL ALL LEGAL REMEDIES
Potsdam, 6 January 2023 - A few days ago, DKR received tax assessment notices for the
years 2016 to 2020 and advance payment notices for the years 2022 and 2023 from the
Potsdam tax office. These show that the tax authorities do not currently recognise the
Company's exemption from corporation and trade tax. Tax assessment notices for the year
2021 are currently still outstanding.
The reason given by the tax authorities is that, in their opinion, the free float ratio of at least
25% required for REIT status could have not been present at the time of listing in the year
2015. The Company has already commented on this in detail in the annual financial
statements for the 2021/2022 financial year and has already recognised tax provisions as a
precaution.
As the tax assessment notices are not yet final, the Company will appeal against the tax
assessment notices and has mandated a renowned German law firm to do so. This law firm
has already prepared an expert opinion on the facts of the case, which expresses considerable
doubts about the assessment of the tax authorities. Therefore, the Company assumes that
there is a high probability that it will prevail in a possible tax dispute and therefore continues
to act like a REIT.
Based on the notices issued, DKR is obliged until further notice to pay income taxes (incl.
interest) totalling EUR 6.4 million for the tax years 2016 to 2020, of which provisions of EUR
3.6 million have already been made. For subsequent years, the Company must initially make
advance tax payments on an ongoing basis.
Based on the view currently taken by the tax authorities, there may be tax-reducing effects for
certain current and former shareholders with regard to their income from dividends or share
sales. In this respect, DKR recommends that its current and former shareholders seek tax
advice, if necessary.
About Deutsche Konsum
Deutsche Konsum REIT-AG, Broderstorf, is a listed real estate company focusing on German
retail properties for everyday goods in established micro-locations. The focus of the
Company's activities is on the acquisition, management and development of local retail
properties with the aim of achieving a steady increase in value and the lifting of hidden
reserves.
The shares of the Company are listed on the Prime Standard of Deutsche Börse
(ISIN: DE 000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary
listing.
Contact:
Deutsche Konsum REIT-AG
Christian Hellmuth
CFO
E-Mail: ch@deutsche-konsum.de
Phone: +49 (0) 331 74 00 76 – 517
Potsdam, 6 January 2023
JSE Sponsor
PSG Capital
Date: 06-01-2023 03:00:00
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