Apple fined R $ 385 million for not paying taxes in Japan

THE Apple had to pay a millionaire fine in Japan after having declared less revenue than it should. The news, which aired on the Japanese TV station NHK and reproduced by Reuters, states that the amount paid was 12 billion yen (approximately R $ 385 million).

MacBook running iTunes

The big story player in the Japanese iTunes Store, which was supposed to send its profit to an Apple subsidiary in Ireland in order to pay for software licensing. The problem is that, in the process of leaving the country, there were taxes that Ma was not paying.

The “scheme” was investigated for a while by Japanese authorities, until it culminated in this fine as explained in detail in the The Japan News.

There are two Apple subsidiaries in Japan: one that sells physical products (Apple Japan) and the other responsible for selling apps, movies, music, etc. (The iTunes K.K.). What happened was that iTunes K.K was supposed to send its profit to the Irish subsidiary (by paying taxes) but instead sent it to Apple Japan (without tax). So, when the subsidiary in Ireland sold the iPhones to Apple Japan (through an affiliate in Singapore), the price charged was the real value of the device plus what would be the profit from iTunes KK sales. All this allowed the value to reach subsidize in Ireland without having to pay any tax.

With this maneuver, Apple moved around $ 587 million between 2012 and 2014. The case was closed last week after the Tokyo Regional Tax Office fined the company, which has already paid the amount due.

Unfortunately, this case is not unique. As we have followed here in , Apple was also ordered to pay about R $ 27 billion to the European Union for tax fraud. This case, however, is far from over. Tim Cook has already said in an open letter that the company will appeal to that decision.

(via MacRumors, Engadget)