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.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.