Scailex Receives Tax Refund of $12.6 Million
18 July 2006 - 8:01AM
PR Newswire (US)
TEL AVIV, Israel, July 17 /PRNewswire-FirstCall/ -- Scailex
Corporation Ltd. (NASDAQ:SCIXNASDAQ:&)(TASE:SCIX) today
announced that it had received a refund of approximately $12.6
million from the U.S. Internal Revenue Service (IRS). As previously
reported, as a result of the conclusion of an IRS audit of the
Company's U.S. subsidiaries for the years 1992 through 1996, the
Company filed in December 2004 amended federal tax returns for the
years 1994, 1995 and 1997, requesting a refund of U.S. federal
taxes. In July 2006, the Company received the requested refund,
which together with interest accrued thereon, totalled $12.6
million. Scailex has already recorded a federal income tax
receivable of $7.8 million in discontinued operations in its
financial results for the year ended December 31, 2005, and expects
to record an additional federal income tax receivable of $4.8
million in discontinued operations in its financial results for the
second quarter of 2006. Scailex Corporation Ltd. Scailex
Corporation shares trade on Nasdaq and The Tel Aviv Stock Exchange
under the symbol "SCIX". For more information, please visit our Web
site at http://www.scailex.com/. Forward Looking Statements Except
for the historical information herein, the matters discussed in
this news release include forward-looking statements within the
meaning of the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements that are based on various assumptions (some of which are
beyond the Company's control) may be identified by the use of
forward-looking terminology, such as "may", "can be", "will",
"expects", "anticipates", "intends", "believes", "projects",
"potential", "are optimistic", "view" and similar words and
phrases. Actual results could differ materially from those set
forth in forward-looking statements due to a variety of factors,
including, but not limited to, (1) our absence of significant
operations following the sale of the business of Scailex Vision and
uncertainty as to our future business model and our ability to
identify and evaluate suitable business opportunities, (2) the fact
that our U.S. shareholders may suffer adverse tax consequences if
we are classified as a passive foreign investment company or PFIC,
(3) changes in domestic and foreign economic and market conditions,
(4) the impact of the Company's accounting policies, (5) risks
relating to pursuing strategic alternatives, (6) risks and
uncertainties associated with the tax and accounting consequences
of the sale of the business of Scailex Vision, (7) risks and
uncertainties relating to the Company's plans for its financial
assets following the sale of Scailex Vision, (8) the fact that we
may be deemed an "investment company" under the Investment Company
Act of 1940 under certain circumstances (including as a result of
the investments of assets following the sale of the operations of
Scitex Vision), and/or the risk that we may be required to take
certain actions with respect to the investment of our assets or the
distribution of cash to shareholders in order to avoid being deemed
an "investment company", (9) risks and uncertainties resulting from
the pending sale of approximately 50% of our outstanding share
capital by our two principal shareholders to an unaffiliated third
party and the potential impact on the Company and our operations
and strategies, and (10) the other risk factors detailed in the
Company's most recent annual report and other filings with the US
Securities and Exchange Commission, including without limitation,
those set forth under such headings as "Risk Factors" and "Trend
Information" in the Company's Annual Report on Form 20-F. Except as
may be required by law, the Company does not undertake, and
specifically disclaims, any obligation to publicly release the
results of any revisions which may be made to any forward-looking
statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such
forward-looking statements. Contact Scailex Corporation Ltd. Yahel
Shachar Chief Financial Officer Tel: +972-3-607-5855 Fax:
+972-3-607-5884 E-mail: DATASOURCE: Scailex Corporation Ltd
CONTACT: Contact: Scailex Corporation Ltd., Yahel Shachar, Chief
Financial Officer, Tel: +972-3-607-5855, Fax: +972-3-607-5884,
E-mail:
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