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News Releases |
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| Announced by Yuanta Financial Holdings on behalf of Yuanta Securities,
the Taipei High Administrative Court's decision regarding Yuanta Core Pacific's case on 2003 income tax. |
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- Parties to the legal matter, name of the court, disposing agency, and reference/case numbers of relevant documents:
Plaintiff: Yuanta Core Pacific Securities Co., Ltd.
Defendant: Taipei National Tax Administration, Ministry of Finance
Court of Jurisdiction: Taipei High Administrative Court
Relevant document and case numbers: Su No. 153, 2010
- Date of occurrence of the event: 2010/05/28
- Background and circumstances of the matter (including the property/subject matter under dispute):The Taipei National Tax Administration assessed additional income tax on Yuanta Core Pacific in 2003 due to the warrant premium, the tax deductibility of the cost related to warrant, and the allocation of public relations expenses, employee benefits and interest expenses to securities trading income.
- Course and progression of handling of the matter: After applying for recheck and administrative appeal and overruled by the Ministry of Finance, Yuanta Core Pacific initiated an administrative litigation. Taipei High Administrative Court has notified us of its decision against Yuanta Core Pacific.
- Effect on company finances and business and estimated monetary amount of the effect:
Tax impact on the warrant portion: NTD890.388 mn
Tax impact on the allocation of public relations expenses, employee benefits and interest expenses to securities trading income: NTD233.470 mn.
Since the company has already made provisions for the possible tax impact, the decision will neither affect profitability nor affect shareholder's equity.
- Countermeasures and status of amelioration: Yuanta Securities will take further actions after extensive discussion and consultation.
- Any other matters that need to be specified: None.
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