Recognition of Income Taxes for Prior Periods
Consolidated subsidiary D&Q JEWELLRY Co., Ltd
Vietnamese tax matters concerning D&Q JEWELLRY Co., Ltd
The tax authorities expressed their position concerning transfer pricing taxation
¥63 million in income taxes for prior fiscal years (recognized in the third-quarter consolidated financial statements for the fiscal year ending August 2026)
Third-quarter consolidated accounting period of the fiscal year ending August 2026 (1 September 2025 to 31 May 2026)
The impact on the full-year consolidated earnings forecast for the fiscal year ending August 2026 is currently under review, including the impact of other factors. If the Company determines that a revision to the earnings forecast is necessary, it will disclose the matter promptly.
Related procedures
Tax Audits
Vietnamese tax authorities; Japanese tax authorities (necessary procedures under consideration)
In light of the tax treaty between Japan and Vietnam and other relevant considerations, the Company is considering the necessary procedures with the Japanese tax authorities to eliminate double taxation.
If any matter requiring disclosure arises in connection with the progress of these procedures or otherwise, the Company will disclose it promptly.
| Item | Details |
|---|---|
| Event name | Recognition of Income Taxes for Prior Periods |
| Date of occurrence | Recognized in the third-quarter consolidated accounting period of the fiscal year ending August 2026 (1 September 2025 to 31 May 2026) |
| Subject Entity | Consolidated subsidiary D&Q JEWELLRY Co., Ltd |
| Target Locations / Products | Vietnamese tax matters concerning D&Q JEWELLRY Co., Ltd |
| Cause | The tax authorities expressed their position concerning transfer pricing taxation |
| Amount of Impact on Business Performance | ¥63 million in income taxes for prior fiscal years (recognized in the third-quarter consolidated financial statements for the fiscal year ending August 2026) |
| Accounting period in which recognized | Third-quarter consolidated accounting period of the fiscal year ending August 2026 (1 September 2025 to 31 May 2026) |
| Impact on Earnings Forecast | The impact on the full-year consolidated earnings forecast for the fiscal year ending August 2026 is currently under review, including the impact of other factors. If the Company determines that a revision to the earnings forecast is necessary, it will disclose the matter promptly. |
| Type of litigation or proceeding | Tax Audits |
| Court or authority | Vietnamese tax authorities; Japanese tax authorities (necessary procedures under consideration) |
| Outlook | In light of the tax treaty between Japan and Vietnam and other relevant considerations, the Company is considering the necessary procedures with the Japanese tax authorities to eliminate double taxation. |
| Planned follow-up disclosure | If any matter requiring disclosure arises in connection with the progress of these procedures or otherwise, the Company will disclose it promptly. |
Items this document does not state (13)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Vietnamese tax authorities expressed their position concerning transfer pricing taxation. After carefully reviewing the matter, the Company decided to file an amended tax return and make an additional tax payment.