Ituran Location and Control Announces Dismissal of State Revenue Services of Sao Paulo's Claim in Respect of a Certain Tax Deficiency Notice
Poster: SySAdmin
Posted on March 5, 2012 at 8:28:01 AM
Ituran Location and Control Announces Dismissal of State Revenue Services of Sao Paulo's Claim in Respect of a Certain Tax Deficiency Notice
AZOUR, Israel, March 5, 2012/PRNewswire-FirstCall/ --
Further to Ituran Location & Control Ltd.'s ("Ituran") report on form 6-K filed on
July 18, 2010 regarding the issuance of a tax deficiency notice by the State Revenue
Services of Sao Paulo, Brazil, against Ituran's subsidiary in Brazil in the total amount
of R$123,969,000 (approximately US$69.5 Million) out of which an amount of R$36,499,984
(approximately US$20.5 Million) as the principal plus an interest in the sum of
R$21,325,647 (approximately US$12 Million) and penalty in the sum of R$66,143,446
(approximately US$37 Million), as detailed in the aforementioned report, Ituran Location
and Control Ltd (NASDAQ: ITRN, TASE: ITRN), today announced, that the Administrative Court
of the State of Sao Paulo dismissed the State Revenue Services of Sao Paulo's claim and
resolved in our favor.
The State of Sao Paulo is entitled to an administrative appeal to a full bench session
at the Administrative Court and if the State of Sao Paulo is successful at the appeal, we
are entitled to challenge the administrative court's decision in a court of law.
If the State of Sao Paulo is not successful at the administrative appeal, at such time
as the decision of the Administrative Court becomes binding and non-appealable, we shall
incur legal fees in the sum of approximately R$13 Million (approximately US$7.5 Million)
of which the sum of R$2.5 Million (approximately US$1.4 Million) is already payable and is
non-refundable.
We continue to maintain our position that our chances of success in defending our
position are favorable.
About Ituran
Ituran provides location-based services, consisting predominantly of stolen vehicle
recovery and tracking services, as well as wireless communications products used in
connection with its location-based services and various other applications. Ituran offers
mobile asset location, Stolen Vehicle Recovery, management & control services for
vehicles, cargo and personal security. Ituran's subscriber base has been growing
significantly since the Company's inception to over 623,000 subscribers distributed
globally. Established in 1995, Ituran has over 1,300 employees worldwide, provides its
location based services and has a market leading position in Israel, Brazil, Argentina and
the United States.
For more information, please visit Ituran's website, at: http://www.ituran.com
Certain statements in this press release are "forward-looking statements" within the
meaning of the Securities Act of 1933, as amended. These forward-looking statements
include, but are not limited to, our plans, objectives, expectations and intentions and
other statements contained in this report that are not historical facts as well as
statements identified by words such as "expects", "anticipates", "intends", "plans",
"believes", "seeks", "estimates" or words of similar meaning. These statements are based
on our current beliefs or expectations and are inherently subject to significant
uncertainties and changes in circumstances, many of which are beyond our control. Actual
results may differ materially from these expectations due to changes in global political,
economic, business, competitive, market and regulatory factors.
International Investor Relations
CCG Israel
Ehud Helft
ehud@ccgisrael.com
Kenny Green
kenny@ccgisrael.com
Tel: 1-646-201-9246
Source: Ituran Location and Control Ltd
AZOUR, Israel, March 5, 2012/PRNewswire-FirstCall/ --
Further to Ituran Location & Control Ltd.'s ("Ituran") report on form 6-K filed on
July 18, 2010 regarding the issuance of a tax deficiency notice by the State Revenue
Services of Sao Paulo, Brazil, against Ituran's subsidiary in Brazil in the total amount
of R$123,969,000 (approximately US$69.5 Million) out of which an amount of R$36,499,984
(approximately US$20.5 Million) as the principal plus an interest in the sum of
R$21,325,647 (approximately US$12 Million) and penalty in the sum of R$66,143,446
(approximately US$37 Million), as detailed in the aforementioned report, Ituran Location
and Control Ltd (NASDAQ: ITRN, TASE: ITRN), today announced, that the Administrative Court
of the State of Sao Paulo dismissed the State Revenue Services of Sao Paulo's claim and
resolved in our favor.
The State of Sao Paulo is entitled to an administrative appeal to a full bench session
at the Administrative Court and if the State of Sao Paulo is successful at the appeal, we
are entitled to challenge the administrative court's decision in a court of law.
If the State of Sao Paulo is not successful at the administrative appeal, at such time
as the decision of the Administrative Court becomes binding and non-appealable, we shall
incur legal fees in the sum of approximately R$13 Million (approximately US$7.5 Million)
of which the sum of R$2.5 Million (approximately US$1.4 Million) is already payable and is
non-refundable.
We continue to maintain our position that our chances of success in defending our
position are favorable.
About Ituran
Ituran provides location-based services, consisting predominantly of stolen vehicle
recovery and tracking services, as well as wireless communications products used in
connection with its location-based services and various other applications. Ituran offers
mobile asset location, Stolen Vehicle Recovery, management & control services for
vehicles, cargo and personal security. Ituran's subscriber base has been growing
significantly since the Company's inception to over 623,000 subscribers distributed
globally. Established in 1995, Ituran has over 1,300 employees worldwide, provides its
location based services and has a market leading position in Israel, Brazil, Argentina and
the United States.
For more information, please visit Ituran's website, at: http://www.ituran.com
Certain statements in this press release are "forward-looking statements" within the
meaning of the Securities Act of 1933, as amended. These forward-looking statements
include, but are not limited to, our plans, objectives, expectations and intentions and
other statements contained in this report that are not historical facts as well as
statements identified by words such as "expects", "anticipates", "intends", "plans",
"believes", "seeks", "estimates" or words of similar meaning. These statements are based
on our current beliefs or expectations and are inherently subject to significant
uncertainties and changes in circumstances, many of which are beyond our control. Actual
results may differ materially from these expectations due to changes in global political,
economic, business, competitive, market and regulatory factors.
International Investor Relations
CCG Israel
Ehud Helft
ehud@ccgisrael.com
Kenny Green
kenny@ccgisrael.com
Tel: 1-646-201-9246
Source: Ituran Location and Control Ltd