Aeon Retail Slapped with 230 M. Yen in Back Taxes

Tokyo, Feb. 8 (Jiji Press)--The Tokyo Regional Taxation Bureau has imposed some 230 million yen in back taxes on Aeon Retail Co. over improper practices for its duty-free sales to foreign tourists, company officials said Wednesday.

The supermarket unit of Aeon Co. <8267> ignored storage periods for documents related to sales of goods exempted from consumption tax over the five years to fiscal 2020.

Aeon Retail also sold goods free of duty to foreigners without checking identification documents such as passports over the two years to fiscal 2020.

For six months after arriving in Japan, foreigners are exempted from consumption tax for items that will be taken overseas for consumption. There is no tax exemption, however, for items they buy for consumption in Japan or for resale.

The tax office examined Aeon Retail from August 2021 to February 2022, apparently finding duty-free sales that were made without meeting requirements.

[Copyright The Jiji Press, Ltd.]