OBAS » Topics » Taxes

This excerpt taken from the OBAS 20-F filed Jun 29, 2009.

Taxes

        As of 2008, Israeli companies are generally subject to a corporate income tax rate of 27%. The income tax rate for Israeli companies is scheduled to be reduced to 26% by 2009 and 25% by 2010. We were granted Approved Enterprise status under the Law for the Encouragement of Capital Investment, 1959 which allow us to enjoy two alternative tax benefits. Under one of the alternatives, a company’s undistributed income derived from an Approved Enterprise will be exempt from corporate tax for a period of between two and ten years from the first year of taxable income, depending on the geographic location of the Approved Enterprise within Israel, and the company will be eligible for a reduced tax rate of 10%-25% for the remainder of the benefits period depending on the level of foreign investment. See also “Item 10.E. Taxation” under the heading “Israeli Taxation- Tax benefits under the Law for the Encouragement of Capital Investment, 1959” below. The period during which we are entitled to receive these benefits is limited to seven or ten years from the first year that taxable income is generated, 12 years from commencement of production or within 14 years from the date of approval of the Approved Enterprise status. A recent amendment to the Law, which has been officially published effective as of April 1, 2005 has changed certain provisions of the Law. An eligible investment program under the amendment will qualify for benefits as a Privileged Enterprise (rather than the previous terminology of Approved Enterprise). See also “Item 10.E. Taxation” under the heading “Israeli Taxation- Tax benefits under the Law for the Encouragement of Capital Investment, 1959” below.

- 33 -



        We have final tax assessments through the tax year 2005. On December 27, 2007 and on May 28, 2008, we received from the Israeli Tax Authorities a Tax Assessment (the “Assessment”) based upon “best judgment” for the years 2002-2003 and 2004-2005 respectively. On January 13, 2009 we signed a settlement agreement with the ITA according to which a final tax obligation of $73,000 was paid for the final tax assessments for the years 2002-2005.

        As of December 31, 2008, we had approximately $50.3 million of net operating loss carry-forwards for Israeli tax purposes which we will have to utilize before we can make use of the tax benefits arising from our “Approved Enterprise” status. These net operating loss carry-forwards have no expiration date.

This excerpt taken from the OBAS 20-F filed Jun 27, 2008.

Taxes

          As of 2007, Israeli companies are generally subject to a corporate income tax rate of 29%. The income tax rate for Israeli companies is scheduled to be gradually reduced to 25% by 2010. We were granted Approved Enterprise status under the Law for the Encouragement of Capital Investment, 1959 which allow us to enjoy two alternative tax benefits. Under one of the alternatives, a company’s undistributed income derived from an Approved Enterprise will be exempt from corporate tax for a period of between two and ten years from the first year of taxable income, depending on the geographic location of the Approved Enterprise within Israel, and the company will be eligible for a reduced tax rate of 10%-25% for the remainder of the benefits period depending on the level of foreign investment. See also “Item 10.E. Taxation” under the heading “Israeli Taxation- Tax benefits under the Law for the Encouragement of Capital Investment, 1959” below. The period during which we are entitled to receive these benefits is limited to seven or ten years from the first year that taxable income is generated, 12 years from commencement of production or within 14 years from the date of approval of the Approved Enterprise status. A recent amendment to the Law, which has been officially published effective as of April 1, 2005 has changed certain provisions of the Law. An eligible investment program under the amendment will qualify for benefits as a Privileged Enterprise (rather than the previous terminology of Approved Enterprise). See also “Item 10.E. Taxation” under the heading “Israeli Taxation- Tax benefits under the Law for the Encouragement of Capital Investment, 1959” below.

          We have final tax assessments through the tax year 2001. On December 27, 2007, we received from the Israeli Tax Authorities a Tax Assessment (the “Assessment”) based upon “best judgment” for the years 2002-2003. According to the Assessment, the Tax Authorities reduced our losses for tax purposes, for those years and imposed a tax obligation of approximately NIS 1.000 million (approximately $285,000). We have reservations with respect to various parts of such Assessment and filed an appeal with the Israeli Tax Authorities. On May 28, 2008, we received from the Israeli Tax Authorities a Tax Assessment (the “Second Assessment”) based upon “best judgment” for the years 2004-2005. In the Second Assessment, the Tax Authorities reduced our losses for tax purposes, for those years and imposed a tax obligation of approximately NIS 669,000 (approximately $190,000). We have reservations with respect to various parts of the Second Assessment and intend to file an appeal with the Israeli Tax Authorities.

          As of December 31, 2007, we had approximately $42 million of net operating loss carry-forwards for Israeli tax purposes which we will have to utilize before we can make use of the tax benefits arising from our “Approved Enterprise” status. These net operating loss carry-forwards have no expiration date.

This excerpt taken from the OBAS 20-F filed May 14, 2007.

Taxes

        As of 2006, Israeli companies are generally subject to a corporate income tax rate of 31%. The income tax rate for Israeli companies is scheduled to be gradually reduced to 25% by 2010. We were granted Approved Enterprise status under the Law for the Encouragement of Capital Investment, 1959 which allow us to enjoy two alternative tax benefits. Under one of the alternatives, a company’s undistributed income derived from an Approved Enterprise will be exempt from corporate tax for a period of between two and ten years from the first year of taxable income, depending on the geographic location of the Approved Enterprise within Israel, and the company will be eligible for a reduced tax rate of 10%-25% for the remainder of the benefits period depending on the level of foreign investment. See also Item 10E. “Taxation” under the heading “Israeli Taxation-Law for the Encouragement of Capital Investment, 1959” below. The period during which we are entitled to receive these benefits is limited to seven or ten years from the first year that taxable income is generated, 12 years from commencement of production or within 14 years from the date of approval of the Approved Enterprise status. A recent amendment to the Law, which has been officially published effective as of April 1, 2005 has changed certain provisions of the Law. An eligible investment program under the amendment will qualify for benefits as a Privileged Enterprise (rather than the previous terminology of Approved Enterprise). See also Item 10E. “Taxation” under the heading “Israeli Taxation-Law for the Encouragement of Capital Investment, 1959” below.

- 31 -



        As of December 31, 2006, we had approximately $32.9 million of net operating loss carry-forwards for Israeli tax purposes which we will have to utilize before we can make use of the tax benefits arising from our “Approved Enterprise” status. These net operating loss carry-forwards have no expiration date

This excerpt taken from the OBAS 20-F filed Apr 12, 2006.

Taxes

        As of 2005, Israeli companies are generally subject to a corporate income tax rate of 34%. The income tax rate for Israeli companies is scheduled to be gradually reduced to 25% by 2010. We were granted Approved Enterprise status under the Law for the Encouragement of Capital Investment, 1959 which allow us to enjoy two alternative tax benefits. Under the one of the alternatives, a company’s undistributed income derived from an Approved Enterprise will be exempt from companies tax for a period of between two and ten years from the first year of taxable income, depending on the geographic location of the Approved Enterprise within Israel, and the company will be eligible for a reduced tax rate of 10%-25% for the remainder of the benefits period depending on the level of foreign investment. See also Item 10E. “Taxation” under the heading “Israeli Taxation-Law for the Encouragement of Capital Investment, 1959” below. The period during which we are entitled to receive these benefits is limited to seven or ten years, from the first year that taxable income is generated, 12 years from commencement of production or within 14 years from the date of approval of the Approved Enterprise status. A recent amendment to the Law, which has been officially published effective as of April 1, 2005 has changed certain provisions of the Law. An eligible investment program under the amendment will qualify for benefits as a Privileged Enterprise (rather than the previous terminology of Approved Enterprise). See also Item 10E. “Taxation” under the heading “Israeli Taxation-Law for the Encouragement of Capital Investment, 1959” below.

        As of December 31, 2005, we had approximately $24.0 million of net operating loss carry-forwards for Israeli tax purposes which we will have to utilize before we can make use of the tax benefits arising from our “Approved Enterprise” status. These net operating loss carry-forwards have no expiration date

        The following table sets forth, for the years ended December 31, 2003, 2004 and 2005 statements of operations data as percentages of our revenues:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki