Mutual Agreement Reached with U.S. Tax Authorities Concerning
Revision Disposition Based on Transfer Pricing Tax System
Capcom Co., Ltd. received a notice of tax assessment dated March 31, 2006 from the Osaka Regional Tax Bureau for the six fiscal years ended in March 2000 through March 2005. As a result, Capcom paid additional taxes of approximately 1.8 billion yen.
Capcom objected to this assessment and, on May 29, 2006, requested a meeting of representatives of Japanese and U.S. tax authorities for the purpose of avoiding double taxation. Capcom has recently received notification from the National Tax Agency that an agreement has been reached between Japanese and U.S. tax authorities concerning this subject.
Due to this agreement with U.S. tax authorities, Capcom expects to receive a combined tax refund from the United States and Japan.
Capcom is currently studying the effect of this refund on the forecast for consolidated performance in the fiscal year ending in March 2010. An announcement will be made once this effect has been determined.