Apple Faces $98 Million Hit on Back Taxes in Japan Nikkei Says
Apple Faces $98 Million Hit on Back Taxes in Japan Nikkei Says. Apple Inc.’s Japan unit is facing a slap on the wrist for over a billion yen in taxes, according to the Nikkei business daily. The company is being charged for a tax on bulk sales of iPhones and other Apple devices to foreign tourists. This is the third time that the company has been hit by a tax in the last three years, and is expected to add to the company’s current debts, said an analyst with the Nikkei.
Apple Inc.’s Japan unit is being charged 13 billion yen ($98 million) in additional taxes for bulk sales of iPhones and other Apple devices to foreign tourists
Apple Inc.’s Japan branch is being slapped with at least 14 billion yen in additional taxes for bulk sales of iPhones and other Apple devices to foreign tourists. But the tax bureau has a few more interesting ideas in store. Aside from the usual suspects, the Japanese government has a secret list of vendors suckered into selling goods overseas.
The Taxation Bureau has been in the business of scrutinizing companies for their compliance with laws governing the sale of duty-free goods and services. They have been examining Apple’s tax-free sales since last year, and have found that the company made a number of egregious mistakes.
The tax agency has issued guidance to retailers about how to correctly assess purchases that qualify for the duty-free status. It also has a database of duty-free purchasers, which is a trove of information that can be sifted through by the powers that be.
The most notable tidbit from the tax bureau is that it has ruled out any tax-free sales to foreigners until at least 2020. While this could be a setback for the popular iPhone maker, it’s not all bad news. After all, the government is working hard to bring its economy back on track, and the extra revenue is needed to fund the government’s massive welfare program.
Consumer inflation hit a four-decade high in November
It’s difficult to find much bad news in the inflation data released by the Bureau of Labor Statistics on Tuesday. Prices are up across the board for a variety of goods and services. A number of items, such as gasoline and electricity, saw big increases, while the cost of some items, such as medical care, declined.
The broader consumer price index, or CPI, was up 7.7 percent in October and 7.1 percent in November. This represents a decline in year-over-year inflation rates, but prices are still rising at a hefty rate.
Prices are expected to continue to rise. But economists believe the pace of price hikes will moderate.
In addition, prices are expected to slow for key consumer goods, such as groceries and apparel. This trend could keep the central bank under pressure to dial back its massive stimulus measures.
Japan’s CPI index hit a four-decade high in November, as companies and households continued to pay higher costs. Among the main reasons for the increases, firms passed on the high cost of energy and raw materials.
Food prices, however, are not expected to ease, as stores and restaurants are planning to add further food costs next year. Overall, the CPI is up 3 percent from a year ago.
The government will increase its focus on wage growth
Japan is a long way from where it was in the early 2000s. The country’s labor force has dipped below the half-million mark in recent years, a number that was once just under 70 percent of the population. Its economy has been on a modest recovery trajectory, but the country still has a lot to do to improve the structural durability of its economy.
The Japanese government is taking steps to boost its economy and put inflation under control. One such measure is the largest economic stimulus package in history, which includes fiscal spending of more than three-billion dollars. While it is not a panacea, the package is expected to boost the real GDP by around 0.1 percent in the current fiscal year. That is not a small feat given that the country’s national debt is twice as large as its economy.
One of the more ambitious elements of the package is a new Global Health Strategy that will focus on pandemic prevention, as well as achieving universal health care. This is in line with the government’s stated goal of addressing the most pressing challenges to global health.
The government is also looking to boost consumer spending by making household utility bills more affordable. Another measure in the package is a revised Development Cooperation Charter that will guide aid efforts to more disadvantaged nations.
