In connection with the ruling by the Federal Fiscal Court on structured securities lending transactions in 2016, the Lower Saxony tax authorities informed Salzgitter AG that the withholding tax amounts from structured securities lending transactions that were credited in the years 2006 to 2011 are to be repaid. Salzgitter AG intends to appeal against this. According to preliminary calculations, the capital gains tax to be paid back including payroll surcharge and interest is around EUR 100 million. The pre-tax result for 2020 will be reduced by around EUR 25 million; Salzgitter anticipates additional tax expenses of around EUR 75 million.
As a result of the good development of the operating business in the fourth quarter of 2020, Salzgitter is sticking to our annual forecast for earnings before taxes.