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Technology Stocks : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (663)	4/16/1998 5:42:00 PM
From: j rector	Respond to of 1418

It even includes an estimated impact on earnings if they didn't get these special tax breaks. !!In 1996, the tax breaks saved 15 cents a share in taxes!! I'll try to look at Note 8. What tax breaks are they referring to? just the reinvestment break, or the combination of the reinvestment break and the 'favorable' rate?

To: kolo55 who wrote (663)	4/16/1998 5:45:00 PM
From: j rector	Read Replies (1) \| Respond to of 1418

>>The Tax Law does not impose withholding taxes on dividends distributed by a joint venture company. I guess this explains the reason for the dividend.

To: kolo55 who wrote (663)	4/16/1998 6:02:00 PM
From: David Seltzer	Read Replies (1) \| Respond to of 1418

Paul,I would assume that Deswell is classified as a foreign company since they are incorporated in the British Virgin Islands.However,some of their subsidiaries are incorporated in Hong Kong,China,Western Samoa and BVI. Quote from 20-F for the year ended 3/31/97:"The company believes it can continue to take advantage of the Chinese taxing system for years beyond the year ended March 31,1997 through reinvestment of the profits from its Chinese plastic manufacturing business.However,the Chinese tax system is subject to substantial uncertainties and was subject to significant changes enacted on 1/1/94,the interpretation and enforcement of which are still uncertain". Getting complicated. David