Publishing delayed confidential information regarding the receipt by a subsidiary of a report from a tax audit carried out by the Texas Comptroller of Public Accounts office
Current Report No 30/2018
Legal basis: Article 17(1) of MAR – inside information
The Management Board of Medicalgorithmics S.A. (hereinafter the “Company”, the “Issuer”) informs that on August 16, 2018 at 10:10 p.m. the Company delayed the disclosure of confidential information that reads as follows:
“The Management Board of Medicalgorithmics S.A. (hereinafter the “Company”, the “Issuer”) informs that on 16 August 2018, the Issuer’s subsidiary – Medi-Lynx Cardiac Monitoring LLC (hereinafter “Medi-Lynx”) received the tax audit report (hereinafter the “Report”) from the Texas Comptroller of Public Accounts office (hereinafter the “Office”).
The tax audit (hereinafter “Tax Audit”) was carried out by the Office in relation to limited sales, excise and use tax paid in Texas, for the period from July 1, 2014 to December 31, 2017.
As a result of the Tax Audit, a potential tax liability of Medi-Lynx in the amount of USD 1,706,009.99 together with interest as of August 14, 2018 in the amount of USD 152,395.85, i.e. a total of USD 1,858,405.84, was found.
The Report is not a decisive document. Nevertheless, if the Report’s provisions are adopted as a result of a possible decision of the Office, and later as a result of a possible decision by the courts of the State of Texas, Medi-Lynx will be obliged to pay the aforementioned tax liability with interest due as at the payment date.
Medi-Lynx has the right to file a Statement of Grounds and Request for Redetermination by October 15, 2018. Medi-Lynx disagrees with the majority of the findings in the Report and intends to take appropriate legal action to demonstrate the lack of grounds for adopting those adverse to Medi-Lynx findings. For this purpose, Medi-Lynx commissioned professional tax advisors to prepare a legal opinion on the validity of the Tax Audit results and the grounds for appealing against the Report.
Medi-Lynx expects to receive the above-mentioned opinion of tax advisers until August 20, 2018. The Company will inform about the results of the opinion and further important stages of the proceedings in separate current reports.
Due to the amount of potential tax liability, the Company considers this information to be significant.”