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SI: Sony May Post Smaller Loss For FY08

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Christopher

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Sony has yet to alter its provisions in its forecast to reflect a new tax law revision, which may point to a smaller loss for FY08. The change is definitely in Sony’s favor, which predicted a 150 billion yen/$1.5 billion net loss. The new law change allows dividends paid by foreign units of Japanese businesses to be exempt from taxation. Bloomberg reports, “Companies in Japan typically include provisions for these taxes in their annual results. It’s unclear how much of the 90 billion yen in provisions Sony set aside last fiscal year can be added back to its books.

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