The Arbitration Court considered that HEX also is liable to pay interest on the VAT refund as of the day HEX received the refund. However, HEX is entitled to deduct from the refund reasonable expenses incurred during the process.
The parties to the arbitration proceedings are pleased that the judicially unclear situation conserning the refund now has been resolved. Due to the uncertainty involved in the processing of the refund, a provision of 11.3 million euro, that corresponds with the refund, was entered into HEX Group's financial statements for the year 2001.
The background for the proceeding is the decision by the Helsinki Administrative Court on September 7, 2001, based on which HEX has been refunded value added tax from the years 1995-2000 in the amount of 9.9 million euro and credited interest on this sum in the amount of 1.4 million euros. HEX and 19 stock exchange trading members and clearing parties agreed on 11 March that HEX liability to reimburse the brokers would be determined in an arbitration proceeding.
