Eurotunnel €890 million tax losses to carry forward indefinitely

By Caroline Salls

Pittsburgh, May 10 - Eurotunnel SA received confirmation from the French Ministry for Economy, Finance and Industry that its €890 million in tax losses for the years 2000 to 2002 can be carried over indefinitely, according to a company news release.

As a result, if Eurotunnel's exchange tender offer is successful, the tax losses would allow the company to generate savings equal to the amount of the tax charge on the fiscal profits expected in 2007.

"All the shareholders who despaired of [France and the United Kingdom] ever taking an interest in Eurotunnel's situation can now be satisfied," Eurotunnel chairman and chief executive officer Jacques Gounon said in the release.

"With these carried forward tax losses, Eurotunnel will benefit from a significant improvement in its fiscal environment, a clear means of creating added value if the ETO succeeds."

In addition, the company said it is receiving approval for taxation agreements in France and the United Kingdom in connection with its Safeguard plan.

Following agreements in principle on these arrangements, Eurotunnel said it has received a formal agreement from French tax authorities, and it should receive a formal agreement from the U.K. tax authorities around the middle of May.

Eurotunnel is the Paris-based operator of the Channel Tunnel.

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