Apple Japan hit with $98 million in back taxes: report

Apple Inc’s Japan unit is being charged 13 billion yen ($97.82 million) in additional taxes by Tokyo for bulk sales of iPhoneS and other Apple devices to foreign tourists that were incorrectly exempted from the consumption tax, Nikkei reported on Monday citing sources.

According to the newspaper, bulk purchases of iPhones by foreign shoppers were discovered at some Apple stores with at least one transaction involving an individual buying hundreds of handsets at once and the store missed taxing at least one possible reseller.

Japan allows tourists staying less than six months to buy items without paying the 10% consumption tax, but the exemption does not apply to purchases for the purpose of resale.

Apple Japan is believed to have filed an amended tax return according to Nikkei. The company did not respond to a Reuters’ request for comment on the report.

The iPhone maker’s Chief Executive Officer Tim Cook visited Japan earlier this month and announced that the company had invested more than $100 billion in its Japanese supply network over the last five years. ($1 = 132.9000 yen) (Reporting by Akanksha Khushi in Bengaluru; Editing by Chizu Nomiyama)

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