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Vision Investments Declares $6m Interim Dividends

Vision Investments Limited has declared a second interim dividend of $0.584 per ordinary share amounting to $6,060,134 for the financial year ended March 31, 2016. This dividend is consistent with
21 Jun 2016 09:10
Vision Investments Declares $6m Interim Dividends

Vision Investments Limited has declared a second interim dividend of $0.584 per ordinary share amounting to $6,060,134 for the financial year ended March 31, 2016.

This dividend is consistent with the information that was disclosed in the information Memorandum that was issued leading up to the company listing on the South Pacific Stock Exchange on February 29.

In announcing the dividends, the directors said the company’s operating results for the financial year 2015/16 was satisfactory, achieving the profit before tax forecast that was disclosed in the information Memorandum earlier.

The company said the actual profit after tax was lower than forecast, as the actual income tax expense was higher due to two reasons.

“In the information memorandum, it was assumed the company will be listed on the South Pacific Stock Exchange in November 2015,” it said.

“Thus, the profits for the four-month period December to year end March 2016, were subject to the reduced income tax rate of 10 per cent applicable to listed companies, compared to the 20 per cent income tax rate applicable Pre-Listing.

“However, due to unavoidable reasons, the listing was delayed to February 29, 2016 and thus the reduced income tax rate of 10 per cent was applicable only for the remaining period of one month until the year ended on March 31.”

Also with the change in the income tax rate from 20 per cent to 10 per cent, the deferred income tax asset in the balance sheet had to be reassessed at the new applicable rate of 10 per cent. This resulted in a write-down of the deferred income tax asset and corresponding increase in tax expense.

The company said both these factors resulted in the increase in the actual tax expense compared to that shown in the information Memorandum.

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