Reply of the State Administration of Taxation on the Pre-tax Deduction of Asset Losses of Ordos Cashmere Group Co., Ltd.

This document is a reply from the State Administration of Taxation to the Inner Mongolia Local Taxation Bureau, ruling that guarantee losses incurred by Ordos Cashmere Group from debt subrogation for Qingdao Dezheng Resources Holding Co., Ltd. must be handled according to the provisions for receivables losses under the Enterprise Asset Loss Pre-tax Deduction Management Measures, rejecting the bureau's proposed 70% pre-tax deduction approach.