An Apple iTunes unit in Japan was ordered to pay some 12 bn yen ($118 mn) in tax by local authorities after underreporting income, media reported on Friday. The unit has since paid the amount, the reports said. The Tokyo Regional Taxation Bureau determined 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, NHK says.
Apple could not be immediately reached for comment outside of US business hours. The tax bureau declined to comment.
Apple and other multinational companies have come under much tax scrutiny from governments around the world. The European Union has ordered Apple to pay Ireland 13 billion euros ($14.6 billion) in back taxes after ruling it had received illegal state aid. Apple and Dublin plan to appeal the ruling, arguing the tax treatment was in line with EU law.
