Apple Japan hit with $98m in back taxes for missing duty-free abuses

TOKYO, Dec 27 (Nikkei) - Apple Japan is being charged 13 billion yen ($98 million) in additional taxes by Tokyo authorities, apparently for bulk sales of iPhones and other devices to foreign tourists that were incorrectly exempted from the consumption tax, Nikkei learned on Monday.

Bulk purchases of iPhones by foreign shoppers were discovered at some Apple stores, a source said. At least one transaction involved an individual buying hundreds of handsets at once, suggesting that the store missed taxing a possible reseller.

Japan's tax-free shopping allows visitors staying for less than six months to buy items such as souvenirs or everyday goods without paying the 10% consumption tax, but this exemption does not apply to purchases for resale purposes.

Apple Japan is believed to have filed an amended tax return. The company also voluntarily stopped offering tax-free shopping in June. ...continue reading

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