Decision and Details
Board of DirectorsLawsuit seeking a refund of erroneously paid withholding income taxes and related taxes concerning trust-type stock options
The Company believes that the National Tax Agency’s view is not a valid interpretation of the tax laws and regulations, and that the Company has no withholding obligation.
The impact on current-period results is currently immaterial.
| Item | Details |
|---|---|
| Matter Covered | Lawsuit seeking a refund of erroneously paid withholding income taxes and related taxes concerning trust-type stock options |
| Decision-Making Body | Board of Directors |
| Decision Date | 17 March 2026 |
| Implementation Date | 17 March 2026 (lawsuit filed) |
| Amount | Amount in controversy: ¥1,452 million. Amount subject to the refund claim: withholding income taxes and related tax amounts paid by the Company (specific amount: Not disclosed) |
| Impact on Business Performance | The impact on current-period results is currently immaterial. |
| Reason | The Company believes that the National Tax Agency’s view is not a valid interpretation of the tax laws and regulations, and that the Company has no withholding obligation. |
| Related previous disclosures | “Notice Concerning the Company’s Response to Trust-Type Stock Options and Recognition of Related Losses,” dated 29 September 2023 |
| Future plans | The Company will clarify its arguments in the legal proceedings and seek a fair judicial decision. If any matters requiring disclosure arise, the Company will promptly disclose them. |
Items this document does not state (3)
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 Company believes that the National Tax Agency’s view that gains from the exercise of trust-type stock options should be taxed as employment income, giving rise to a withholding obligation for the company, is not a valid interpretation of the tax laws and regulations, and that the Company has no withholding obligation.