Ito-Yokado Told to Take Action after Tax Nonpayment

Politics

Tokyo, Feb. 15 (Jiji Press)--Japan's Fair Trade Commission on Friday told Ito-Yokado Co. to take preventive measures after the supermarket chain failed to pay 50.5 million yen in consumption tax to parking lot operators and suppliers.

From April 2014, when the consumption tax was raised to 8 pct from 5 pct, Ito-Yokado failed to reflect the tax hike in its parking fee payments to 19 companies that run parking lots near Ito-Yokado outlets in the greater Tokyo area, the FTC said.

Ito-Yokado, a core unit of Seven & I Holdings Co. <3382>, did the same with its payments to 137 suppliers of food products and sundry goods, the commission said.

The supermarket company blamed staff's lack of awareness and its insufficient checking system, adding that it will promptly take action, including compensation payments to the affected businesses.

"We deeply apologize. We will strive to strengthen our compliance culture further and prevent a recurrence by conducting in-house training," Ito-Yokado said.

[Copyright The Jiji Press, Ltd.]

Jiji Press