Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-10

I have spoken to the company about this matter and also read the many quarterly reports. Apparently, the company's lawyers have had extensive dialogue with the ITO, but no path forward has been found.

The reality is that more than 70% of the ITO claim is complete nonsense, but the assessment was made, and it is difficult to alter that. It arose because back in 2018, the company recorded an impairment of PE, and the accounting software characterised it as a sale and repurchase. The ITO has latched onto the term 'sale'.

It is just unimaginable for the company to have to pay VAT for equipment that the ITO says it has sold when that equipment is in the factory.
My understanding is that original purchase invoices and serial numbers have been provided and matched with the existing equipment. I was also told that the tax officials responsible for the assessment were invited to the factory to view the equipment that was 'sold', but they declined the offer.

I hate to say it, but it really seems like someone on the ITO side of things is after a 'reward'.