On December 3, 2008, Mitsui & Co., Ltd. ("Mitsui") announced that it received from the National Tax Agency of Japan ("NTA") a notice that the competent authorities of Japan and Australia reached a mutual agreement with respect to a transfer pricing taxation in connection with the North West Shelf LNG Project in Western Australia, which had been in discussion under the income tax treaty between Japan and Australia.
Mitsui has been audited by the Tokyo Regional Tax Bureau ("TRTB") since 2005 with respect to the transfer pricing taxation in connection with the North West Shelf LNG Project in Western Australia for the six fiscal years ended March 31, 2000 through 2005 and received notices of tax assessment and paid approximately 11.1 billion yen for the three fiscal years ended March 31, 2000 through 2002. Mitsui was entirely unconvinced by the assessment determinations and made protests to TRTB while it requested the mutual agreement procedure in November 2006 pursuant to the income tax treaty between Japan and Australia seeking the elimination of the double taxation. Today, Mitsui received from NTA a notice that the competent authorities of Japan and Australia reached the mutual agreement.
In accordance with this mutual agreement, Mitsui will receive a notice of abatement regarding the tax assessments from TRTB while our associated company, an operating company in the Project, will receive a correlative relief from the Australian tax authority. The transactions will have no impact on the operating results for the year ending March 31, 2009.
In light of this mutual agreement, Mitsui plans to avoid the double taxation in respect of the income earned after March 31, 2005 through the mutual agreement procedures of advanced pricing arrangement.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.