Apple Japan Slapped with 14 B. Yen in Back Taxes

Tokyo, Dec. 27 (Jiji Press)--The Tokyo Regional Taxation Bureau has imposed 14 billion yen in back taxes on Apple Japan over improper duty-free sales of iPhone smartphones to foreign tourists, sources said Tuesday.

The Tokyo-based unit of U.S. technology giant Apple Inc. was slapped with what is likely to be the largest amount of back taxes over duty-free sales of goods exempted from the consumption tax in Japan.

Tourists from abroad are exempted from the consumption tax for items that will be taken overseas as souvenirs and for other purposes. But the tax is levied on purchases intended for resale.

Subject to the back taxes were sales worth some 140 billion yen over the two years to September 2021, the sources said. Apple Japan is believed to have already filed an amended tax return.

Apple Japan has stopped duty-free sales at its stores in the country.

[Copyright The Jiji Press, Ltd.]