Apple Japan hit with $98 million in back taxes: report

Apple Inc’s Japan unit is being charged 13 billion yen ($97.82 million) in further taxes by Tokyo for bulk gross sales of iPhoneS and different Apple gadgets to international vacationers that have been incorrectly exempted from the consumption tax, Nikkei reported on Monday citing sources.

According to the newspaper, bulk purchases of iPhones by international consumers have been found at some Apple shops with not less than one transaction involving a person shopping for a whole lot of handsets without delay and the shop missed taxing not less than one doable reseller.

Japan permits vacationers staying lower than six months to purchase objects with out paying the ten% consumption tax, however the exemption doesn’t apply to purchases for the aim of resale.

Apple Japan is believed to have filed an amended tax return in line with Nikkei. The firm didn’t reply to a Reuters’ request for touch upon the report.

The iPhone maker’s Chief Executive Officer Tim Cook visited Japan earlier this month and introduced that the corporate had invested greater than $100 billion in its Japanese provide community over the past 5 years. ($1 = 132.9000 yen) (Reporting by Akanksha Khushi in Bengaluru; Editing by Chizu Nomiyama)

Stay on prime of technology and startup news that issues. Subscribe to our each day e-newsletter for the newest and must-read tech news, delivered straight to your inbox.