TNT reported that they are preparing an addendum to their report, submitted in August 2004, to the UK Inland Revenue, that will cover other UK tax matters not addressed in the original report. Furthermore TNT is separately investigating the tax position of certain non-UK subsidiaries. The outcome of these investigations may have a material impact on TNT?s results and financial position.

The investigations have revealed the likelihood of illegal acts relating to certain past tax matters. On behalf of TNT?s Supervisory Board, its Audit Committee has taken responsibility for overseeing these investigations and will retain an independent law firm to assist it in conducting a full, independent investigation.

“The investigations have revealed the likelihood of illegal acts relating to certain past tax matters.” De Telegraaf newspaper said the fiscal claims could amount to as much as 400 million euros ($488.3 million), including back tax payments, interest over several years and possible fines. TNT was not immediately available to comment on the figure.

TNT has appointed Mr. Karel Kooijman to coordinate these investigations and to report directly to its Audit Committee. Mr. Kooijman retired in 2000 as the head of the tax department of the Royal Dutch Shell Group. Subsequently, until 2003, Mr. Kooijman acted as part-time special counsel to the Director-General for Tax Policy and Legislation of the Ministry of Finance of the Netherlands.

The TNT spokeswoman said the new investigation into non-British units had resulted from that probe, but said the British tax inquiry was now settled. She said the investigation was not connected with Chief Financial Officer Jan Haars decision to resign. Haars, who joined TNT as CFO in August 2002, is due to leave no later than the first quarter of 2006, the firm said on Monday.

As reaction on this news the share price of TNT dropped today with over 9%, but recovered during the day to a loss of almost 4%.

Sources: TNT, Reuters and AEX

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