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Appeal court decides on suit filed by Denso seeking retraction of tax authorities’ decision on reassessment of Denso’s profits under anti-tax haven rules

Denso Corporation received a notification from the Nagoya Regional Taxation Bureau on June 22, 2012 that Denso’s subsidiary in Singapore was not covered by the exemptions to the anti-tax haven rules, and thus Denso was required to amend its total reported taxable income for the two fiscal years ending in March 2010 and March 2011, … Continued

Denso Corporation received a notification from the Nagoya Regional Taxation Bureau on June 22, 2012 that Denso’s subsidiary in Singapore was not covered by the exemptions to the anti-tax haven rules, and thus Denso was required to amend its total reported taxable income for the two fiscal years ending in March 2010 and March 2011, to declare unreported income of about 13.8 billion yen and to pay about 6.1 billion yen in back taxes including local and other taxes.

Dissatisfied with the judgment, Denso filed a lawsuit with the Nagoya District Court for annulment of the decision and its claims were recognized by the district court on January 26, 2017. Then the defendant appealed to the Nagoya High Court.

Denso today announces that the defendant’s claims were dismissed by the high court and Denso’s assertion was accepted.

Moreover, Denso also received a same notification from the Nagoya Regional Taxation Bureau for the two fiscal years ending in March 2008 and March 2009 under the anti-tax haven rules. On October 24, 2017, the judgement for the final appeal will be delivered by the Supreme Court.

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