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Apple Japan Charged with $98 Million in Back Taxes by Tokyo

Apple Japan is facing a charge of 13 billion yen ($97.82 million) in additional taxes by Tokyo due to the misuse of a tax exemption on bulk sales of iPhones and other Apple devices to foreign tourists, according to a report by Nikkei.

Apple store in Tokyo
Apple store in Tokyo

The exemption, which allows tourists staying in Japan for less than six months to buy items without paying the 10% consumption tax, does not apply to purchases for resale. At least one transaction involving the bulk purchase of hundreds of iPhones by a foreign individual at an Apple store in Japan has been discovered, leading to the belief that the store should have taxed at least one possible reseller.

Apple Japan Files Amended Tax Return in Response to Charge

In response to the charge, Apple Japan is believed to have filed an amended tax return, according to Nikkei. The company has not commented on the report, as it did not respond to a request for comment by Reuters. This news comes after Tim Cook visited Japan earlier this month and announced that Apple invested $ 100 billion in the Japanese supply network.