Apple's Japan Unit Hit With $98 Mln In Back Taxes : Report

Apple Inc's (AAPL) Japan unit is being charged 13 billion yen or $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, the Nikkei newspaper reported, citing unidentified sources.

According to the report, Bulk purchases of iPhones by foreign shoppers were discovered at some Apple stores. 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.

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

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