Nissan Fails to Declare 20 B. Yen in Taxable Income
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Tokyo, Nov. 8 (Jiji Press)--Japanese tax authorities have found that Nissan Motor Co. <7201> failed to declare over 20 billion yen in fiscal 2016 income related to a tax haven-based subsidiary, informed sources said Thursday.
To fight the allegation, the automaker has filed an appeal with the National Tax Tribunal.
According to officials of Nissan and other sources, the Tokyo Regional Taxation Bureau has imposed additional taxes on the automaker in connection with the insurance unit based in Bermuda, where tax rates are low.
An arrangement was made for part of auto loan insurance premiums paid by Nissan to insurance companies to be transferred to the subsidiary in question.
Through the application of Japan's tax rules designed to fight abuses of tax havens, the taxation bureau claimed that the income at the subsidiary should be added into the income at the parent.
[Copyright The Jiji Press, Ltd.]