DURING THE YEAR, WALC PAID OUT PERFORMANCE BONUSES OF VND5,200 MILL...

1. During the year, WALC paid out performance bonuses of VND5,200 million for the year ended 31 December2013 to personnel ranked manager and above. In the audited report for the year ended 31 December 2013,WALC had made a provision of VND4,800 million for these bonuses. WALC claimed the full amount of thisprovision as deductible in its 2013 tax return.In June 2014, a tax audit conducted by the local tax authorities for the year ended 31 December 2013disallowed VND1,960 million of the above provision for the year 2013 because it exceeded the provision cap of17%. However, the tax authorities confirmed in writing that this excessive provision would be deductible in theyear of payment. WALC booked the tax collection plus penalty for this amount of VND550 million to otherexpenses, and the VND400 million under-provided bonuses for 2013 to the cost of sales for the year 2014.WALC decided not to make any provision for performance bonuses for the year 2014.