Apple Gets $105 Million Tax Bill

Apple Gets $105 Million Tax Bill in Japan for Bulk Sale of iPhone to Tourists

Apple’s Tokyo division has been given $105 million, or about Rs. According to Kyodo News, the bulk duty-free sales of iPhone smartphones and other Apple devices to foreign visitors resulted in additional taxes totaling 870 crore.

Kyodo News reported, citing a person with knowledge of the situation, that the Tokyo Regional Taxation Bureau discovered Apple Japan’s approximately $1,04,16,84,000 (roughly Rs. 8,634 crore) in tax-free sales for two years until September 2021 were the result of fraudulent duty-free purchases intended for commercial resale.

According to the Japanese news agency, the taxation bureau began its investigation last year and discovered numerous unusual transactions, including a tourist purchasing several hundred devices at an Apple store.

The extra expense of $105 million forced on underreported deals, is accepted to be the most noteworthy extra utilization charge charged on record for tax-exempt deals, according to the news report.

Tax-free shopping is only available to foreign visitors who make purchases of everyday items or souvenirs within six months of their arrival in Japan to take them abroad.

The items are dependent upon tax collection on the off chance that they are purchased to exchange, according to the Kyodo News report. However, the nature of the purchases needs to be assessed by the stores.

It is said that iPhones and other goods are less expensive in Japan than elsewhere. According to the news report, the tax bureau has reason to believe that vendors are attempting to profit from Japan’s duty-free system by encouraging visitors to Japan to purchase the goods and then selling them abroad for profit.

After cases of department stores buying cosmetics and other products in bulk for the purpose of reselling them, the Taxation Bureau issued administrative guidance to department stores in June to ensure that products were properly sold.

The cases included a group of seven Chinese nationals who traveled to Japan in 2020 on tourist and other visas and were charged approximately $56,58,162 (roughly Rs. 46 crore) on their $5,73,26,115 (approximately Rs. 475 crore) in luxury brand merchandise, according to Kyodo News. It was found that the items, which included watches and totes, were purchased for resale.

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