Denso : District Court Decides on Suit Filed by DENSO Seeking Retraction of Tax Authorities’ Decision on Reassessment of DENSO’s Profits under Anti-tax Haven Rules

Jan. 26, 2017 News Releases

KARIYA (Japan) ― 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, on June 2, 2014, DENSO filed a lawsuit with the Nagoya District Court for annulment of the decision. DENSO today announces that its claims have been recognized by the district court.

Moreover, on June 28, 2010, DENSO was requested to correct the amount of reported taxable income for the two fiscal years ending in March 2008 and March 2009 under the anti-tax haven rules. On February 23, 2016, DENSO filed a final appeal to the Supreme Court; the case is under deliberation.

About DENSO Corporation

DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs more than 150,000 people. Consolidated global sales for the fiscal year ending March 31, 2016, totaled US$40.2 billion. Last fiscal year, DENSO spent 8.8 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.