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TDK Receives Reinvestigation Decision Regarding Correction Notices Based on Transfer Pricing Taxation, Requests for Reconsideration
July 26, 2007
TDK Corporation (the "Company") previously reported that on June 29, 2005 it received correction notices from the Tokyo Regional Taxation Bureau (Nihonbashi Tax Office) based on transfer pricing taxation. On August 26 that year, the Company filed a request for reinvestigation with the same Bureau. TDK has asserted the legitimacy of its position to the Bureau over the past two years through oral statement procedures. On June 29, 2007, TDK received a reinvestigation decision from the Bureau, rescinding ¥3,073 million of the incremental income assessed. As a result of this determination, TDK expects to receive back ¥1,687 million of the total corporation tax and other additional tax liabilities already paid, including regional tax.
However, having reviewed the details of the reinvestigation decision, TDK still believes that it is significantly at odds with the Company's position. Because it remains unconvinced by the Bureau's position, TDK today filed a request for reconsideration with the Tokyo National Tax Tribunal, seeking rescind of the full amount of the portion not permitted by the Bureau in accordance with its legal rights.
TDK is determined to continue working to obtain a satisfactory resolution of this matter by having its position understood in a different forum.
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