Adoption of the 2016 Auditors Report and Non-Dividend Payment
The Annual General Meeting (AGM) approved the adoption of the Balance Sheet and Profit & Loss Statements and auditors report for the 2016 financial year. The AGM also approved the Board of Directors’ proposal that no dividend shall be paid to shareholders for the financial year 2016. The company incurred a large increase in income tax expense for the year by 81% compared to 2015. The new Income Tax Act (“ITA”) became effective on 1 January 2016 which required any gain (including capital gain) from the disposal of a depreciable asset to be taxed at the income tax rate of 20%. Under the accounting standards (IFRS), RPHCL is required to accrue the tax effect on unrealized gain (valuation increment) of its Investment Property (Ro Lalabalavu House). This has been accrued at the Capital Gains Tax rate of 10% up to 31 December 2015. With the new ITA becoming effective in 2016, RPHCL will now have to accrue this tax at the income tax rate of 20%, hence this tax adjustment.
Election of Directors and Auditor
The AGM approved the reappointment of the three retiring Directors for another 3-year term. Board Members reelected are Ro Epeli Mataitini, Ratu Ilisoni Vuidreketi and Jone Sovanivalu.
The AGM also approved the re-election of the auditing firm Ernst & Young as the auditors of the company until the end of 2018.
For additional information, contact:
Baro Saumaki, CEO, +679 9484265