The problems for Apple don’t seem to end as now an iTunes unit of Apple Japan is asked to pay 12 billion yen (around $118 million) in tax by local authorities after under reporting income according to a report.
The Tokyo Regional Taxation Bureau stated that the unit, which sends part of its profits earned from fees paid by Japanese iTunes subscribers to another unit of the parent company in Ireland as a payment for software licensing, had not been paying a withholding tax liable on those earnings in Japan. On this the tax department of Apple seemed quite and due to US official time difference Apple couldn’t be reached to comment on the above at that time.
This is not the first time Apple is found culprit for not paying tax, similarly the firm was asked to pay Ireland 13 billion Euros ($14.6 billion) in back taxes after stating that it had received illegal state aid.
Apple and Dublin plan to appeal the ruling party and the same time keeping on arguing that the tax treatment was in line with European Union (EU) laws.
While Ireland government has decided to go by the ruling party’s sayings to support the investments done in the country by multinational companies including Apple which made the firm’s problems a bit of relaxed but this doesn’t seems the same with Japan, As the Japanese Government seems to be in no mood to be liable with the firm or even be cooperative with Apple Japan.
As yesterday only there were reports by a Japanese Government advisory panel where it was reported that Apple and Google are reducing app competition and using illegal methods to make the users use their currency online which incurred huge losses to Japanese Government. You can find the above-mentioned article here. Feel free to express your views on the same in the comment box below.