The Tokyo unit of US technology giant Apple has been slapped with USD 105 million (14 billion yen) in additional taxes over bulk duty-free sales of iPhone smartphones and other Apple devices to foreign visitors, Kyodo News reported.
Citing a source close to the matter Kyodo News reported that
the Tokyo Regional Taxation Bureau found Apple Japan's approximately USD
1,04,16,84,000 (140 billion yen) tax-exempt sales for two years through
September 2021 were made by fraudulent duty-free purchases to be resold for
commercial purposes.
The taxation bureau, which began its investigation last year,
found multiple unusual transactions, including a tourist purchasing several
hundred devices at an Apple store, the Japanese news agency reported.
The additional tax of USD 105 million (14 billion yen)
imposed on underreported sales, is believed to be the highest additional
consumption tax charged on record for tax-free sales, as per the news report.
Only foreign visitors who purchase souvenirs or daily goods
within six months of arriving in Japan to take them abroad can do tax-free
shopping. The products are subject to taxation if they are bought to resell, as
per the Kyodo News report. However, the stores need to assess the nature of
purchases.
Certain goods like iPhones are said to be cheaper in Japan
than in other nations. The tax bureau suspects vendors want to take advantage
of Japan's duty-free system by soliciting visitors to Japan to buy the products
and then sell them abroad for profit, according to the news report.
In June, the Taxation Bureau announced administrative
guidance to department stores to demand products be sold properly after cases
of bulk buying of cosmetics and other products at departmental stores for
reselling came to light.
The cases included a group of seven Chinese nationals, who
used tourist and other visas to visit Japan in 2020 and Osaka Regional Taxation
Bureau charged them around USD 56,58,162 (760 million yen) on their purchases
of USD 5,73,26,115 (7.7 billion yen) worth of luxury brand goods, as per the
Kyodo News reported. It was found that the products, which included watches and
handbags, were bought for resale.
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