OREANDA-NEWS. HOYA Corporation announced that it received a reassessment notice from the Tokyo Regional Taxation Bureau (“TRTB”) with respect to its transfer pricing taxation in transactions with overseas subsidiaries that develop and manufacture electronics related products, for the five year period from the fiscal year ended March 31, 2007 through the fiscal year ended March 31, 2011.

The notice indicates that the Company’s revised tax liabilities are approximately nine billion yen incorporate income tax and local taxes (including other taxes). It is estimated that the Company will be required to pay a total of approximately 3.3 billion yen in additional tax, due to the existence of net operating losses carried forward with respect to the indicated fiscal years. The revised tax was largely attributable to income earned prior to the global financial crisis of mid-2008.

The Company believes with confidence that it carried out transactions with its overseas subsidiaries under fair and proper conditions, and that the Company and those subsidiaries appropriately declared and paid a proper amount of taxes in accordance with the tax laws and regulations of each country. The Company disagrees with the judgement of TRTB and will promptly lodge an objection with the tax authority seeking withdrawal of the reassessment notice in accordance with the relevant law.

The Company will closely examine the content of the reassessment notice, and will account for it in the first quarter of the fiscal year ending March 31, 2014.