ROSH HAAYIN, Israel,
August 6, 2015 /PRNewswire/ --
Pointer Telocation Ltd. (Nasdaq Capital Market: PNTR)
- a leading developer, manufacturer and operator of Mobile
Resource Management (MRM), announced today that it received, from
the State Revenue Services of São Paulo, a tax deficiency notice
against its subsidiary in Brazil,
Pointer do Brasil Comercial Ltda., claiming that the vehicle
tracking and monitoring services provided by such subsidiary should
be classified as telecommunication services and therefore subject
to the imposition of State Value Added Tax - ICMS, resulting in an
imposition of 25% state value added tax on all revenues of this
subsidiary during the period between February 2012 and January
2014. The tax deficiency notice is in the amount of
R$9,858,745 (approximately
US$2.8 million) plus interest in the
amount of R$3,165,599 (approximately
US$1 million) and penalties in the
amount of R$26,666,821 (approximately
US$7.7 million).
Based on the preliminary advice received to date, the Company
believes that the merits of the case are favorable to the Company.
The Company has also been advised that two similar actions brought
by the State Revenue Services against other companies in recent
years have been dismissed and resolved in favor of such companies.
The Company therefore believes that the claim by the State Revenue
Services is without merit and intends to vigorously defend itself.
As a result, the Company does not currently intend to make any
provisions in its consolidated financial statements in respect of
the alleged tax deficiency notice and the imposition of State Value
Added Tax as described above.
David Mahlab, President and CEO
of Pointer commented, "We are continuing to explore and analyze
this matter and are evaluating the appropriate course of action to
resolve this matter in the best interest of the Company. Based on
the legal advice received to date, and the experience of other
companies that have been subject to similar claims, we believe that
this claim will be resolved in our favor."
About Pointer Telocation
Pointer Telocation is a leading provider of technology and
services to the automotive and insurance industries, offering a set
of services including Road Side Assistance, Stolen Vehicle Recovery
and Fleet Management. Pointer has a growing list of customers and
products installed in more than 45 countries. Cellocator, a Pointer
Products Division, is a leading AVL (Automatic Vehicle Location)
solutions provider for stolen vehicle retrieval, fleet management,
car & driver safety, public safety, vehicle security and
more.
The Company's top management and the development center are
located in the Afek Industrial Area of Rosh Ha'ayin, Israel.
Safe Harbor Statement
This press release contains forward-looking statements with
respect to the business, financial condition and results of
operations of Pointer and its affiliates. These forward-looking
statements are based on the current expectations of the management
of Pointer, only, and are subject to risk and uncertainties
relating to among other things, regulatory factors,
changes in technology and market requirements, the
company's concentration on one industry in limited
territories, decline in demand for the company's
products and those of its affiliates, inability to timely develop
and introduce new technologies, products and applications, and loss
of market share and pressure on pricing resulting from competition,
which could cause the actual results or performance of the company
to differ materially from those contemplated in such
forward-looking statements. Pointer undertakes no obligation to
publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. For a more
detailed description of the risks and uncertainties affecting the
company, reference is made to the company's reports filed from time
to time with the Securities and Exchange Commission.
Contact
Zvi Fried, V.P. and Chief
Financial Officer
Tel.: +972-3-572-3111
E-mail: zvif@pointer.com
Kenny Green / Ehud Helft, GK Investor Relations
Tel: +1-646-201-9246
E-mail: pointer@gkir.com
SOURCE Pointer Telocation Ltd