Increase in Tax Burden Due to Elimination of Tax Loss Carryforwards
First written in FY2023. 2 of 4 entries say "Worsened", first in FY2024. Latest entry: FY2026.
Transaction Media Networks moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2026: 28 of 56 companies on the "Worse" side.
31 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Company had tax loss carryforwards for tax purposes as of 31 March 2026.」
Tax loss carryforwards increased from ¥300,965 thousand to ¥310,193 thousand, and the risk of a tax burden at normal rates when they are eliminated remains. - FY2025RestatedAnnual report
「The Company had tax loss carryforwards for tax purposes as of 31 March 2025. If the Company's performance progresses smoothly relative to its business plan and its tax loss carryforwards are eliminated, corporate tax, inhabitants' tax and enterprise tax will be recognized at the normal tax rates, which could affect net income and cash flow.」
The existence of tax loss carryforwards and the risk of a higher tax burden when they are eliminated continue, with tax loss carryforwards for tax purposes stated at ¥300,965 thousand. - FY2024WorsenedAnnual report
「Likelihood of materialization: High Impact: Medium」
The Company explicitly states that tax loss carryforwards existed as of 31 March 2024 and assesses the likelihood of the risk materializing as high. - FY2023First statedAnnual report
「If the Company's performance progresses smoothly relative to its business plan and its tax loss carryforwards are eliminated, corporate tax, inhabitants' tax and enterprise tax will be recognized at the normal tax rates, which could affect net income and cash flow.」
The existence of tax loss carryforwards and the possibility of a tax burden at normal rates once they are eliminated are identified as risks.