(Montreal) Dorel Industries said Thursday evening that the Administrative Court of Luxembourg had upheld a court ruling that one of their subsidiaries had to pay US $ 64.2 million in taxes.
As a result, the Montreal-based company has specified that it owes a non-recurring residual balance of US $ 45.4 million to the Luxembourg tax authorities.
The tax charge relates to an internal reorganization of the company which took place in 2015.
Dorel CEO Martin Schwartz said the company was disappointed with the decision, but would respect it.
The company says the ruling will reduce its third-quarter earnings by US $ 1.90 per share.
Dorel is due to release its full financial results for the third quarter on November 5.