Olympus hit with $62.5M in back taxes

Olympus hit with $62.5M in back taxes

Summary: Japanese tax bureau decides portion of Olympus' expenses for buying Gyrus in 2008 not legitimate, and imposes 5 billion yen in taxes and fines on company, report states.

SHARE:

The Tokyo Regional Taxation Bureau has issued a 5 billion yen (US$62.46 million) charge to Olympus for back taxes spanning five years and penalties for misreporting its financial transactions, according to a report.

In a report on Thursday, the Yomiuri Shimbun said the scandal-tainted Japanese electronics company did not declare about 1.6 billion yen in incomein relation to its acquisition of Gyrus Group over five years until March 2011.

Citing unnamed sources, the report said tax authorities did not recognize the company's claims for 15 billion yen (US$187.9 million) worth of expenses related to the purchase of the British company. The acquisition of Gyrus cost the Japanese company US$2 billion.

Olympus on Wednesday issued a statement saying it will "respond appropriately" to any notices it receives from the tax authorities, which it has yet to receive. It said it has set aside enough funds to prevent any revisions to its earning outlook for this fiscal year ending March 2013.

Last week, another Japanese electronics maker NEC also reportedly evaded more than 10 billion yen (US$124.9 million) in taxes for three years by overcompensating a Hong Kong company when it pulled out of its overseas mobile phone business.


Topics: Legal, Government Asia, Tech Industry

Ellyne Phneah

About Ellyne Phneah

Elly grew up on the adrenaline of crime fiction and it spurred her interest in cybercrime, privacy and the terror on the dark side of IT. At ZDNet Asia, she has made it her mission to warn readers of upcoming security threats, while also covering other tech issues.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion