Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 70

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 3
Chunk 70
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 evidence;
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•   the judgment and its enforcement are not contrary to the law, public policy, security or sovereignty of the State of Israel;
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•   the judgment was not obtained by fraud and does not conflict with any other valid judgment in the same matter between the same parties;
                                                                      and                                                                  
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•   an action between the same parties in the same matter was not pending in any Israeli court at the time the lawsuit was instituted
                                                            in the U.S. court.                                                       
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 The tax benefits available to us for activities in Israel require us to meet several conditions and may be terminated or reduced in the future, which would increase our costs and taxes.
 
We have benefited and currently benefit from a variety of Israeli government programs and tax benefits with regards to our operations in Israel, that generally carry conditions that we must meet in order to be eligible to obtain any benefit. Our tax expenses and the resulting effective tax rate reflected in our financial statements may increase over time as a result of changes in corporate income tax rates, other changes in the tax laws of the countries in which we operate, non-deductible expenses, loss and timing differences, or changes in the mix of countries, where we generate profit.
 
If we fail to meet the conditions upon which certain favorable tax treatment is based, we would not be able to claim future tax benefits and could be required to refund tax benefits already received including interest and linkage to the Israeli consumer price index. Any of the following could have a material effect on our overall effective tax rate:
 

•   we may be unable to meet the requirements for continuing to qualify for some programs;
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•   these programs and tax benefits may be unavailable at their current levels; or
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•   we may be required to refund previously recognized tax benefits if we are found to be in violation of the stipulated conditions.
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Additional details are provided in Item 5.A “Operating Results” under the caption “Taxes on Income”, in Item 10.E. “Taxation” under the caption “Israeli Taxation” and in Note 15 to our Financial Statements.