Central Bancorp Reports Settlement of REIT-Related State Tax Liability.Business Editors SOMERVILLE, Mass.--(BUSINESS WIRE)--June 24, 2003 Central Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CEBK), the holding company for Central Co-operative Bank The Co-operative Bank is a co-operative bank trading in the United Kingdom with headquarters in Manchester, UK. It is an ethical bank, and refuses to invest in companies involved in the arms trade, genetic engineering, animal testing and use of sweated labour as stated in its ("Central Bank"), today reported that Central Bank is one of a group of banks that has entered into an agreement with the Massachusetts Department of Revenue (the "DOR Dor or Dora, Canaanite seaport, ancient Palestine (modern Israel), N of Caesarea Palestinae. It was never a Jewish city but rather a Phoenician outpost. It was rebuilt by the Romans; still visible are the ruins of a temple and a theater. ") to settle the issue related to state income taxes owed on dividends received from Central Bank's real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) subsidiary for the fiscal years 2000 through 2003. Under the agreement, Central Bank paid $430,547, representing 50% of the amount assessed for the fiscal 2000 to 2002 tax years, including interest. As part of its estimated tax Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. payments, Central Bank previously paid the anticipated settlement of $167,830 for fiscal 2003. These payments are deductible for federal tax purposes. During the fourth quarter of fiscal 2003, the Company accrued approximately $850,000, representing an estimate of the cost of state legislation passed on March 5, 2003, which retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin eliminated the 95% dividends received deduction applicable to dividends paid to Central Bank by its REIT subsidiary. Based on the settlement reached with DOR, the Company has reversed $374,000 of the taxes previously accrued for this matter, which will be included as a reduction of income tax expense in the Company's financial results for the quarter ending June 30, 2003. Central Bank, a Massachusetts-chartered co-operative bank, operates eight full-service banking offices and one limited-service high school branch in suburban Boston. This press release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are based on management's current expectations regarding economic, legislative and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services. |
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