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Apple ordered to pay $118 million tax in Japan

Staff Writer |
An Apple iTunes unit in Japan was ordered to pay some 12 billion yen ($118 million) in tax by local authorities after underreporting income, local media reported.

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The unit has since paid the amount, the reports said. 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.

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.

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