Sinomax, which issued a profits warning and its first half results in August, said that it was investigated because the authorities thought that it had underpaid tax from 2004 to 2014. The tax authorities imposed a charge of HK 108.5m covering financial years ending 31 December 2005, 2006, 2007, 2008, and 2009.
The company appealed against this decision, but was forced to pay HK$ 29.1m. After a period of negotiation, Sinomax made a payment of HK 89.3m to settle the tax audit, the balance of the provision will be returned to its profit and loss account.
XE Currency conversion: 7 September, 2016