Changes in accounting standards and tax laws, and differences of opinion with the tax authorities
First written in FY2019. 1 of 3 entries say "Materialised", first in FY2021-Q2. Latest entry: FY2023.
The whole theme swung hardest in 2024: 2 of 13 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「The Company had filed an appeal with the Tokyo High Court on 8 November 2022, but while the appellate proceedings were underway, the Supreme Court issued a judgment on 6 March 2023 against the taxpayer in a similar case. The Company determined that it would be more beneficial to concentrate its management resources on business activities than to continue the litigation, withdrew the appeal on 31 March 2023, and the original judgment became final and binding.」
The Company withdrew its appeal in the litigation concerning the correction of consumption taxes for prior fiscal years, and the original judgment became final and binding. The additional tax payment of ¥136 million has already been paid, and the Company states that it will have no effect on results from the current fiscal year onward. - FY2021-Q2MaterialisedAnnual report
「During a tax audit conducted by the Kanto-Shinetsu Regional Taxation Bureau, the Company received a notice of correction concerning consumption taxes for prior fiscal years dated 15 April 2019. The Company filed a request for review with the President of the National Tax Tribunal seeking rescission of the correction, but in April 2020 received a decision from the President of the Tribunal dismissing the request for review. Dissatisfied with this decision, the Company filed an action with the Tokyo District Court on 7 October 2020 seeking rescission of the correction and other dispositions.」
The request for review concerning the correction of consumption taxes for prior fiscal years was dismissed, and the Company filed an action for rescission on 7 October 2020. The difference of opinion with the tax authorities has developed into an actual dispute. - FY2019First statedAnnual report
「The application of new accounting standards or the introduction or revision of new tax systems may affect the Company’s financial condition and operating results. In addition, revisions to tax systems and other regulations, or differences of opinion with the tax authorities regarding tax filings, may result in a greater-than-expected tax burden for the Company.」
The Company identifies changes in accounting standards and tax systems, and differences of opinion with the tax authorities, as risks that could affect its financial condition and operating results.