Ørsted has received an administrative decision from the Danish Tax Agency requiring Danish taxation of the company’s British offshore wind farms Walney Extension and Hornsea 1 in the tax years 2015 and 2016. The Danish Tax Agency’s claim amounts to DKK 5.1 billion, plus interest amounting to DKK 1.5 billion.
According to the decision, Ørsted is to be taxed in Denmark on the full future value of the two offshore wind farms, despite the fact that they are developed, owned, and operated by British subsidiaries of the Ørsted group and are already taxed in the UK. The decision also entails that the date of taxation is brought forward, as Ørsted, according to the Danish Tax Agency, should be taxed on the future value long before the offshore wind farms were built.
Ørsted disagrees with the decision and will appeal it to the Danish Tax Appeals Agency. Furthermore, Ørsted will take steps to ensure that the Danish and UK tax authorities initiate negotiat
