Apple Pays $118 Million Tax Bill in Japan After Underreporting Profits

Apple has paid some 12 billion yen ($118 million) to Japan after underreporting income in the country, according to broadcaster NHK (via Reuters). The company has yet to comment on the matter.

Japanese tax authorities determined that Apple failed to pay withholding taxes on profits it earned from subscribers in Japan and shifted to its Irish subsidiary to pay for software licensing.

The Tokyo Regional Taxation Bureau determined that the unit, which sends part of its profits earned from fees paid by Japan subscribers to another Apple unit in Ireland to pay for software licensing, had not been paying a withholding tax on those earnings in Japan, according to broadcaster NHK.

The news comes just over two weeks after the European Commission ordered Ireland to collect 13 billion euros ($14.5 billion) from Apple in unpaid taxes. The executive body said Apple received illegal state aid from Ireland, allowing it to pay a less than 2 percent tax rate between 2003 and 2014. Apple said it is confident the decision "will be reversed," and Ireland has also vowed to appeal.

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Tags: corporate tax, Japan

Top Rated Comments

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Nr123*123

36 months ago

Spending too much time avoiding tax and too little time actually making products.

Rating: 6 Votes

vooke

36 months ago

Apple has blurred the line between evasion and avoidance and in its place churned out underwhelming 'innovations'

Rating: 4 Votes

Scottsoapbox

36 months ago

I completely support Apple avoiding as much taxation as legally possible (no it is not a moral issue). But keep it legal Apple. Using loopholes created by the very politicians that cry foul? Go for it! Undereporting your actual profits? Ah no.

Rating: 4 Votes

ddkkpp

36 months ago

This is an obvious pattern of behaviour for Apple.

They should own up to their deceptions and just pay the piper.

Rating: 4 Votes

racingbull

36 months ago

Oooops, they did it again.

Pay your dues how we all do. This is eroding Apple's image which is no good. Greedy.

Rating: 4 Votes

now i see it

36 months ago

Apple's new logo.

Rating: 3 Votes

japanime

36 months ago

Apple has paid some 12 million yen ($118 million) to Japan after underreporting income in the country

12 million yen does NOT equal $118 million USD.

Rating: 3 Votes

smacrumon

36 months ago

I have a love and hate for Apple. This aspect of how Apple runs its business is what I hate about Apple. Pay your damn taxation bills fully and properly, Apple. Stop dodging taxes worldwide. Pay your bills dirty, filthy, underhanded, Apple! iMessage sticker says greedy pigs.