Additional tax payments for prior fiscal years arising from a transfer pricing tax audit of the Chinese subsidiary
First written in FY2021-Q2. 1 of 3 entries say "Worsened", first in FY2021-Q3. Latest entry: FY2021.
The whole theme swung hardest in 2026: 2 of 6 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2021MitigatedAnnual report
「Based on these discussions, we made the appropriate payment of ¥139 million. In addition, for the three-year period from fiscal 2017 through fiscal 2019, we recorded the estimated additional tax payment of ¥19 million as prior-period income taxes based on the details agreed with the Chinese tax authorities.」
Regarding the transfer pricing tax audit, ¥139 million for fiscal 2007 through fiscal 2016 was paid, while an estimated additional tax payment of ¥19 million for fiscal 2017 through fiscal 2019 was recorded. Compared with the ¥174 million estimate as of the previous quarter, the payment and recording status was organized by covered period at fiscal year-end. - FY2021-Q3WorsenedAnnual report
「However, based on the findings to date and the audit process, we have recorded the estimated additional tax payment of ¥174 million, which is considered likely to arise, as prior-period income taxes in the consolidated financial results for the second quarter and thereafter.」
The estimated additional tax payment arising from the transfer pricing tax audit of the Chinese subsidiary was updated from ¥170 million to ¥174 million and was recorded as prior-period income taxes, following the second quarter. - FY2021-Q2First statedAnnual report
「At Guangzhou Kyosha Circuit Technology Co., Ltd. (Kyosha Guangzhou), our consolidated subsidiary, a transfer pricing tax audit covering the 13-year period from fiscal 2007 through fiscal 2019 was conducted based on findings by the Chinese tax authorities concerning transactions with us and our consolidated subsidiary Kyosha Hong Kong Company Limited (Kyosha Hong Kong), and we expect to receive a reassessment notice. However, based on the findings to date and the audit process, we decided to record the estimated additional tax payment of ¥170 million, which is considered likely to arise, as prior-period income taxes in the consolidated financial results for the second quarter.」
A transfer pricing tax audit concerning the Chinese subsidiary covered the 13-year period from fiscal 2007 through fiscal 2019, and the company expects to receive a reassessment notice. The estimated additional tax payment of ¥170 million was recorded as prior-period income taxes.