Nikkei report: Apple Japan hit with $98 mln in back taxes

Apple Japan

According to the Nikkei newspaper, Apple’s Japan division is being charged an additional 13 billion yen ($98 million) in taxes for large-scale sales of iPhones and other Apple devices to foreign visitors that were inadvertently exempt from the consumption tax.

The Nikkei reported on Tuesday, citing unnamed sources, that mass purchases of iPhones by foreign shoppers had been discovered at various Apple outlets, with at least one transaction involving a person purchasing hundreds of phones all at once.

Japan permits visitors who are staying for less than six months to purchase goods without paying the 10% consumption tax, however this exemption does not apply to purchases made with the intention of reselling them.

According to Nikkei, Apple Japan is said to have submitted an amended tax return.

The company merely said in an email that tax-exempt purchases were currently unavailable at its outlets in response to a Reuters request for comment. The regional taxation office for Tokyo declined to comment.

Advertisement ~ Scroll to continue

Tim Cook, the CEO of the iPhone manufacturing company, visited Japan earlier this month and said that during the previous five years, the company has invested more than $100 billion in its Japanese supply network.

($1 = 132.9000 yen)