Tokyo’s Regional Taxation Bureau had detected that the company had underreported its income to the tune of $118 million and had ordered the company to pay its dues. Apple has responded to the order by promptly paying its dues.
The iTunes unit of Apple in Japan has been ordered to pay $118 million (12 billion yen) in taxes by the local authorities after it detected under reporting of income, stated Japanese media reports today.
Japanese media reports have stated that the dues, as demanded, have been paid.
According to NHK, the Tokyo Regional Taxation Bureau detected that Apple’s unit sent part of its profits earned from fees paid by Japanese subscribers to another Apple unit in Ireland, in order to pay fees for software licensing. According to the tax watchdog, Apple’s unit had not paid taxes from its earnings in Japan.
While the tax bureau declined to comment, Apple was unreachable for comments outside regular U.S. business hours.
The increased scrutiny comes in the wake of multinational companies coming up with clever tricks to dodge taxes.
Earlier this year, the EU had also ordered Apple to pay Ireland 13 billion euros ($14.6 billion) in back taxes after the emergence of the news that the company received illegal state aid.
Dublin and Apple have appealed that ruling arguing that the tax treatment is in accordance with EU law.
($1 = 102.0700 yen)
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