Toyota dressed down by taxman for failing to declare 6 billion yen in income
Toyota Motor Corp. failed to declare more than 6 billion yen in taxable income over a three-year period ending March 2004, sources close to the company said.
The figure includes 2 billion yen the company is accused of raising by selling car parts to its overseas subsidiaries at lower prices. It is also accused of using the money to cover its sales promotion and other expenses, the sources said. The tax authorities further charged that the company padded its advertising expenses and deducted the amount from its taxable income.
The automobile giant has been slapped with approximately 2 billion yen in back taxes, including the heavy penalty tax, according to the sources.
The company said it has paid the back taxes, even though it denies deliberately concealing its income. “We place a priority on abiding by the law and properly declared our income. We followed the tax authorities’ instruction even though there is a perception gap between them and us.” (Mainichi)
