P5 News
Shonan Tax Office No. 165
June 2003

Deferred Tax Charges

  Japanese government decided to inject two trillion yen of the public fund to Resona Holdings, Ins. (HD). It means that government manages the bank from now on. Daiwa, Asahi, and Osaka bank, which were united as Resona Bank, had been already injected over one trillion yen of the public fund, in addition to two trillion yen of the public fund. 

  The reason of an injection of the public fund is that the equity capital rating went down to two percent because banks that operate in Japan must hold more than four percent. Government obtains rights of resolves because of injection of the public fund; moreover, government is able to resolve such as a removal of officer. Substantially, government manages Resona Holdings, Ins. 
Asahi & Co denies all deferred tax charges of Resona Holdings in April. Consequently, the value of capital decreases. 

  Asahi & Co is a group of professionals who support clients with high quality advisory services, from auditing to preparation for initial public offerings and business risk consulting. Asahi & Co used to make audits of old asahi bank, and they planned to make an audit of Resona. However, they refused to do that right after they deny all deferred tax charges. This information galvanized not only monetary facilities but also industries, yet Shin Nihon & Co made an audit of Resona, and they admitted sixty percent of deferred tax charges. Therefore, equity capital rating of Resona became 2.07 percent. 

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