Mega Image owners lose another dispute in court

Photo: rli.uk.com

Reading time:<1 minute

Just one month after Ahold Delhaize, the owner of the Mega Image network, was forced to pay taxes back to the Belgian tax authorities, the retail group was deemed ineligible for a tax advantage in the Netherlands. Together, both cases amount to more than half a billion euros, writes RetailDetail.

The tax dispute in the Netherlands revolves around the merger between Ahold and Delhaize in 2016: Ahold wanted to amortize a so-called “merger goodwill” in connection with the synergistic benefits of the merger, for a period of ten years. But the Dutch tax authorities disagreed. The retailer then went to court, but the court ruled against Ahold Delhaize, RTL Nieuws reports.

As a result, the merged group will lose a tax advantage of 200 million euros over ten years. Now, Ahold Delhaize is considering appealing.

This is the second failure for Ahold Delhaize in a short time: in February, the company was forced to pay 382 million euros to the Belgian tax authorities. This tax had to do with the acquisition of the American Delhaize stores by the resulting group: these stores were undervalued according to the Belgian tax authorities. Ahold Delhaize paid the fee, but appealed in hopes of getting the money back.