Jun 25, 2012
DENSO Receives Notice of Supplementary Tax Assessment Order from Nagoya Regional Taxation Bureau
KARIYA (Japan) - DENSO Corporation received a supplementary tax assessment order from the Nagoya Regional Taxation Bureau (NRTB), pursuant to the provisions of the Special Taxation Act concerning tax havens on June 22, 2012. The supplementary income assessment was approximately 13.8 billion yen, and the additional tax payment was approximately 6.1 billion yen, including the local government taxes, covering DENSO's Singapore subsidiary for the fiscal years ending March 2010 and 2011. DENSO made the tax payments to the NRTB on June 25, 2012.
DENSO is dissatisfied with the NRTB's assessment order and is confident the Singapore subsidiary satisfies the provisions of the Special Taxation Act. Also, and the company firmly believes it appropriately reported tax information to the NRTB.
DENSO believes that the Singapore subsidiary satisfies the provisions of the Special Taxation Act because since 1995, when DENSO first entered Singapore, the subsidiary has provided regional management services to DENSO's subsidiaries in the Asia and Oceania region, and most employees engage in these services. The Singapore subsidiary is also equipped with the facilities needed for these operations.
DENSO believes the supplementary tax assessment is unfair and plans to lodge an objection to the NRTB's assessment.
As a result of the assessment, DENSO does not expect any significant impact on its consolidated financial results for the year ending March 31, 2013.
On June 28, 2010, the Company also received a supplementary tax assessment order from the NRTB requesting the aggregate taxes on the profits of the Singapore subsidiary for the fiscal years ending March 2008 and March 2009. On August 8, 2011, the Company filed a complaint with the Nagoya District Court for the rescission of the supplementary tax assessment order. This case is pending in the court.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 35 countries and regions (including Japan) and employs approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2012, totaled US$38.4 billion. Last fiscal year, DENSO spent 9.5 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.