January 29, 2023

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Apple Japan hit $98 million in back taxes – Nikkei

TOKYO, Dec. 27 (Reuters) – Apple Inc (AAPL.O) Japan’s Nikkei newspaper said the Japanese unit is charging an additional 13 billion yen ($98 million) in taxes on bulk sales of iPhones and other Apple devices to foreign tourists who were improperly exempted from consumption tax.

Citing anonymous sources, the Nikkei reported on Tuesday that bulk purchases of iPhones by foreign shoppers have been detected at some Apple Stores with at least one transaction involving an individual buying hundreds of phones at once.

Japan allows tourists staying less than six months to purchase goods without paying a 10% consumption tax, but the exemption does not apply to purchases for resale.

According to the Nikkei, Apple Japan is believed to have filed an amended tax return.

In response to Reuters’ request for comment, the company only said in an email that tax-free purchases are not currently available in its stores. The Tokyo Regional Tax Office declined to comment.

iPhone CEO Tim Cook visited Japan earlier this month and announced that the company has invested more than $100 billion in its Japanese supply network over the past five years. Read more

($1 = 132.9000 yen)

Additional reporting by Akanksha Khushi in Bengaluru and Kiyoshi Takenaka in Tokyo; Editing by Keizo Nomiyama and Kenneth Maxwell

Our standards: Thomson Reuters Trust Principles.

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