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Home Business

Apple Japan ordered to pay 14 billion yen on duty-free sales

by Sumbul Farid
December 28, 2022
in Business, News, Popular, Tech, Trending, World
Reading Time: 2 mins read
0
Apple Japan imposed with $97.82 million extra tax

Apple Japan is believed to have filed an amended tax return

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According to sources familiar with the matter, the Tokyo Regional Taxation Bureau ordered Apple Japan Inc. to pay consumption taxes of around 14 billion yen ($105 million) relating to its duty-free sales.

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Apple Japan is believed to have filed an amended tax return

As per the investigation carried out by the bureau, it was found that some “duty-free” transactions made at the Tokyo-based company’s stores did not meet the requirements for exemption from taxes. These transactions included bulk purchases of iPhones that officials believe were made with the intention to resell, as per the sources.

According to the sources, Apple Japan, the Japanese unit of U.S. technology giant Apple Inc., is believed to have already rectified its tax return after the probe. Apple Stores in Japan have halted their duty-free sales. The consumption tax is levied on products when they are sold and bought in Japan. Thus, the tax is generally not levied when foreign tourists buy something in Japan and bring it back to their home countries.

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The duty-free doesn’t apply to purchases that are made with the intention of reselling the products. According to the sources, the Tokyo Regional Taxation Bureau started probing into the company’s tax affairs in or after 2021.

It found some suspicious duty-free sales of iPhones and other products at Apple Stores.In some of the transactions, for example, one foreign tourist bought several hundred iPhones. The Bureau officials concluded that such bulk purchases were likely made to resell the items.

According to sources, they determined that of the total duty-free sales the company made in two years to September 2021, around 140 billion yen should not have been exempt from the consumption tax.

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