The struggling conglomerate, which separated out its chip unit in April prior to its proposed sale, said it was being taxed on the basis of assets and liabilities of the transferred business at the time of the split.
Due to the fact that the sale, which is expected to raise almost $18billion, has yet to obtain regulatory approval the latest figures do not include it.
Toshiba said that due to the tax impact, it expects a loss of 110 billion yen ($970 million) in the year to March, instead of its previously forecast profit of 230 billion yen.
Annual revenue and other profit forecasts unchanged.
Toshiba’s highly contentious sale of the unit, the world’s second biggest producer of NAND flash memory chips, to a group led by Bain Capital is intended to help cover liabilities arising from its U.S. nuclear unit Westinghouse.
Because of the nature of the deal and the company looking like it might fail to obtain anti-trust clearance before the financial year end in March, it could find itself in a position of reporting negative net worth for a second year in a row – which could result in it being delisted from the Tokyo Stock Exchange.
