Apple Could Face Nearly $100 Million of Back Tax in Japan

Apple Inc’s unit in Japan is being charged 13 billion yen ($98 million) in additional taxes for its sales of iPhones and other products made by Apple to foreign tourists that were incorrectly exempted from the consumption tax, Nikkei newspaper reported.

The local newspaper cited an unidentified source, stating that bulk purchases of Apple’s iPhones by foreign shoppers were discovered at some Apple stores and at least one of those transactions involved an individual buying hundreds of Apple’s handsets.

According to rules and regulations in Japan, tourists are allowed to stay up to six months without the requirement to pay the 10% consumption tax on buying items. However, the rules did not cover for the purpose of resale. 

Nikkei reported that Apple Japan is believed to have filed an amended tax return. Meanwhile, Apple replied to Reuters when requested for comment, saying that tax-exempt purchases were currently unavailable at its stores.