A PYMNTS Company

Japan: Tokyo tax bureau imposes US$118m back-tax on Apple

By  |  September 18, 2016

Tokyo authorities have imposed a back-tax of US$118 million on an Apple Inc subsidiary over money transfers to Ireland, reports said yesterday.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Tokyo Regional Tax Bureau ordered music distribution firm iTunes KK to pay US $117.7 million 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 that iTunes transferred to Apple in Ireland over two years to 2014, Yomiuri, public broadcaster NHK and other media said.

    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 agency quoted sources as saying.

    The authority argued that 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.

    Full Content: Taipei Times

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.