Page 117 - 56-1 One Report 2022 EN

Part 1 Business Operation and Operating Performance

Social Network : Facebook: Thaicom PLC.

THAICOM is listed on the Stock Exchange of Thailand (SET)
SET ticker THCOM

Reuters THCOM.BK
Bloomberg THCOM TB

Foreign limit : 40%
Fiscal year ends : 31 December
External Auditor : KPMG Phoomchai Audit Ltd.

For additional information, please visit the Company’s Form 56-1 One Report at www.sec.or.th or the Company’s
website.

5.2 Other Information

- None –

5.3 Legal Dispute
1. Income Tax Assessment in India
The Company began to provide transponder services to customers in India around the fourth quarter of 1997 after
the THAICOM 3 was launched into orbit Most of the customers were television broadcasters and internet service
.
.
providers In 2000, the Income Tax Authority of India notified the Company that the income from transponder
services was considered a royalty from which a withholding tax at the rate of 15 should be deducted. The
%
Authority made an assessment of the income tax demanded from the Company for the assessment year 1998-1999
(1 April 1997 – 31 March 1998). The Company sent a letter to the Income Tax Authority of India to clarify that the
Company considered the income from transponder services as business income and the Company had no
permanent establishment (P.E) in India, hence, such income was not taxable in India. The Income Tax Authority of
India, however, affirmed its position and continued with assessments of the Company’s income tax liability in India.
The Company appealed the assessment of the Income Tax Authority of India with the Income Tax Appellate Tribunal
( “ ITAT”) on the ground that the income from transponder services was not royalty In 2006, ITAT decided in the
.
case of PanAmSat on the same issue, namely that income that comes from transponder services is a business
income rather than royalty. The Company’s legal and tax consultant in India is of the opinion that ITAT and the High
Court of India will give their decisions in favour of the Company and that the Company will have no income tax
liability in India from such income The Company also requested the Thai Ministry of Finance to enter into
.
discussions with the Ministry of Finance/Income Tax Authority of India using the mutual agreement procedure under
Article 25 of the Double Tax Avoidance Agreement between Thailand and India to reach an understanding of
whether income from transponder services is royalty or business income.

The Indian tax assessment officer has assessed the income tax, surcharge, educational tax and interest from the
revenue received from the customers in India at the total amount of INR 859 million and levied penalty in the amount
of INR 566 for the Assessment Year (‘AY’) 1998-1999 to 2012-2013 (1 April 1997 to 30 March 2012).
On 16 October 2009, the ITAT Special Bench gave its ruling on the Company’s appeal and that of another satellite
company SES New Skies Satellite ( “ NSS”) on the assessment by the Revenue Department of India and the
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Part 1 Page 103