Business
Receipt of the Correction Not
Receipt of the Correction Not.
About this update from Satsuma Technology Plc
[{"type":"text","content":"\n RNS Number : 5411O Softbank Corp 30 June 2010 \n \n\nJune 30, 2010\n \nReceipt of the Correction Notice by Yahoo Japan Corporation\n \nSOFTBANK CORP. (hereafter \"the Company\") announces that the Company was informed by Yahoo Japan Corporation (Head office: Minato-ku, Tokyo; President and CEO: Masahiro Inoue, hereafter \"Yahoo Japan\"), a consolidated subsidiary of the Company, that it received a correction notice from Tokyo Regional Taxation Bureau (hereafter \"TRTB\").\nYahoo Japan acquired all the shares of SOFTBANK IDC Solutions Corp. (hereafter \"IDC\") from the Company in February 2009, and merged IDC by absorption in March 2009. The correction notice Yahoo Japan received is the result of the regular tax audit of Yahoo Japan by TRTB and it corrects the tax treatment of the merger. For the points made by TRTB in the correction notice and Yahoo Japan's counter-opinion, please refer to the press release \"Regarding the Correction and Ruling Notice Received Concerning the Merger with SOFTBANK IDC Solutions Corp.\" Yahoo Japan issued today. The Company believes that Yahoo Japan's merger of IDC and its subsequent business development was conducted based on Yahoo Japan's reasonable judgment of the business perspective. The Company also believes that its tax treatment was legitimate and appropriate.\nImpact on the financial results of the Company resulting from this event is as follows.\n \n1. Impact on consolidated financial results of the Company\nAs a result of the correction by Yahoo Japan, the Company will record additional tax expenses of approximately JPY 26.5 billion as prior-year income taxes on a consolidated basis, for the first quarter of FY2010 ending March 2011. Impact on net income will be approximately JPY 24.8 billion, after reducing income taxes of approximately JPY 1.7 billion due to tax deductible enterprise tax and interest tax paid, included in the additional tax expenses.\n \n2. Impact on non-consolidated financial results of the Company \nThe agreement on the transfer of IDC shares between Yahoo Japan and the Company states that the sale price shall be adjusted should the tax bureau deny the utilization of the loss carryforwards that was part of the basis of the sale price calculation. As a result of the aforementioned correction,...