Apple Japan subsidiary hit with $118M tax penalty

That penalty, of course, is a drop in the bucket to Apple, but it’s interesting because it’s related to Apple’s well-publicized tax problems in Ireland. The European Commission decided August 30 that Apple should pay around $14.5 billion in back taxes there.

Japanese tax enforcers in Tokyo ordered the subsidiary, iTunes K.K., to pay 12 billion yen, or about $118 million, in tax penalties. As Yomiuri Shimbun reports, iTunes K.K. was fined for “failing to properly pay withholding tax (see below) on usage rights for software allowing online music and video distribution.” The Tokyo Regional Taxation Bureau said that had the income been classed correctly it would have been taxable in Japan.

The Apple subsidiary is said to have accepted the judgement and has already paid the penalty to the bureau.

[Photo: Flickr user m01229]MS