According to these tax assessments, Israel’s Matav-Cable Systems’ income for tax purposes for the years 1997-1999 were higher by 117 million Israeli shekels ($23 million), and its carryforward losses for the year 2000 were lower by NIS 63 million. The additional taxes that the company is required to pay, amount to NIS 42 million.
The main reasons for the tax assessments received were disagreements regarding the depreciation rates of the company's network and infrastructure and certain financing expenses that the tax authorities do not consider as tax-deductible.
Matav disagrees with the tax authorities' opinion and will appeal against these tax assessments. Management's opinion, based on the evaluation of its auditors and external advisers, is that the company has well founded arguments against all of the claims included in these tax assessments, which will decrease these tax payments significantly. These arguments include principles that were determined by the Israeli tax authorities in final tax assessments from prior years.
Matav is one of Israel's three cable television providers, serving roughly 25 percent of the population. Matav's investments include 7.4 percent of Partner Communications, a GSM mobile phone company and 10 percent of Barak, one of the three providers of international long distance telephony calls. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
