UMC Electronics (TYO:6615) will file a lawsuit in the Tax Court following a ruling from the Mexican tax authorities ordering its subsidiary, UMC Electronics Mexico, SA de CV (UMC Mexico), to pay 463 million Mexican pesos (approximately 3.3 billion yen), according to a Thursday filing on the Tokyo Stock Exchange.
The company rejects the ruling and aims to reassert the legitimacy of UMC Mexico's claims.
In an effort to mitigate further financial impact, UMC Electronics will provisionally pay 448 million Mexican pesos (approximately 3.2 billion yen), a partial reduction of the total amount, in compliance with Mexican laws and regulations.
The company is also considering the accounting treatment of this payment and will disclose any relevant developments.
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