Ap­ple Ja­pan slapped with US$118 mil­lion in back taxes

The Myanmar Times - - International Business -

TOKYO au­thor­i­ties have im­posed a back tax of US$118 mil­lion on an Ap­ple sub­sidiary over money trans­fers to Ire­land as the IT gi­ant’s tax pay­ments come un­der global scru­tiny.

The Tokyo Re­gional Tax Bureau or­dered mu­sic dis­tri­bu­tion firm iTunes KK to pay 12 bil­lion yen in un­paid taxes and the firm fully paid the sum, the mass-cir­cu­la­tion Yomi­uri news­pa­per and other me­dia said, cit­ing un­named sources.

The ex­tra tax was im­posed on about 60 bil­lion yen that iTunes trans­ferred to Ap­ple in Ire­land over two years to 2014, Yomi­uri, public broad­caster NHK and other me­dia re­ported.

The Ja­panese author­ity found a large amount of prof­its were trans­ferred from the iTunes com­pany in Tokyo to an Ap­ple sub­sidiary in Ire­land via Ap­ple Ja­pan, Ky­odo News quoted sources as say­ing.

The author­ity ar­gued the trans­ferred money should have been de­fined as roy­alty fees sub­ject to in­come tax pay­ments but the iTunes com­pany did not de­clare the money as such, Ky­odo said.

The tax bureau said it does not com­ment on in­di­vid­ual cases. Ap­ple Ja­pan, mean­while, told AFP in an email it had no com­ment. Ap­ple’s op­er­a­tions in Ire­land have come un­der scru­tiny. The Euro­pean Com­mis­sion, the EU’s pow­er­ful com­pe­ti­tion reg­u­la­tor, last month or­dered Ap­ple to re­im­burse a record 13 bil­lion eu­ros ($15 bil­lion) in un­der­stated and un­paid taxes in Ire­land.

In its land­mark de­ci­sion late last month, the com­mis­sion ar­gued that Dublin handed Ap­ple favourable tax terms that amounted to state aid – il­le­gal un­der its rules.

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