Tokyo government charges Apple Japan $98 million

Apple Japan was fined $98 million for not charging resellers and tourists with consumption tax.

Apple Japan

Nikkei reported that authorities found that the company was not charging consumption tax to resellers. Bulk purchases of hundreds of iPhones at Apple Stores across the country were unannounced and strongly suggested the buyer was a reseller.

Tourists staying six months or less are exempt from taxes when they purchase certain goods. However, the rule does not apply to those who intend to resell the purchased items for a higher price. To remedy the situation, Apple Japan has already had a tax filing amendment.

Japan’s tax authorities found 24,000 mislabeled transactions this year. Japan levied about 86.9 billion yen in fines and taxes, which was 11 percent more than five years earlier. In related news, Apple executives Greg Joswiak and Tim Cook recently wrapped up a trip to the country.

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